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Lender Finance

Securities Backed Lending and Corporate Finance

Secure Up To $75,000,000 for your Lending Business

Our strategies extend to growth funds as we provide them with asset-backed warehouse facilities to grow your lending business.

Target Clients for Senior ABS Program

Fast growing non-bank lenders (originators) with demonstrable performance over multiple vintages
Originators that have U.S. or Canadian based operations and asset portfolios
Technology-driven origination, underwriting, risk management, servicing and/or collections
Experienced operators with sufficient alignment through self funded or externally raised junior capital

We Customize and Structure Each Transaction to Fit Your Lending Practice.

Our capital cater to various types of lending business, primarily in the United States, Canada, the UK, and UAE

Factoring / Trade Finance / Receivables Merchant Cash Advance
Fintech Platform
Small Business Lending
Revenue Based Finance
Equipment Finance
Medical Lien / Litigation Finance
Unsecured Consumer Loans

Reach out to us for any questions regarding our Lender Finance Products

Popular Post–

Shaping the Lender Finance transactions

Shaping the Lender Finance transactions with Avon River Ventures’ Structured Financing Approach

Introduction The ability to optimize capital utilization and expand loan portfolios is often the difference...

Risk and Control in Lender Financing

Risk and Control in Lender Financing

For growing lenders, risk management and maintaining control are two sides of the same coin....

Securing a financing facility often hinges on one critical element: collateral. For non-bank lenders, understanding what can be used as collateral, how to maximize its value, and what lenders like Avon River Ventures are looking for can make a huge difference in securing the right deal. In this article, we break down the essentials of collateral requirements in lender financing, share industry insights, and walk through a real-life case where collateral played a crucial role in obtaining financing. Why Collateral Matters in Lender Financing? Collateral serves as a security buffer that protects the lender in case the borrower is unable to meet their obligations. By providing collateral, lenders can reduce their risk and offer more favorable terms, such as lower interest rates and longer repayment periods. In 2023, over 80% of non-bank lenders relied on asset-backed facilities, using collateral like receivables, inventory, and equipment to secure funding. This reflects a trend where lenders increasingly prefer structured deals that provide greater security and predictability. The Basics of Collateral Types Different financing facilities accept different types of collateral. The right type for your business will depend on your asset base, loan structure, and industry. Here’s a breakdown of common collateral types: Receivables: These are outstanding invoices that represent money owed to your business. Receivables are commonly used in warehouse lines and factoring facilities because they provide a predictable cash flow that can back the loan. Inventory: Physical goods or products that can be liquidated if necessary. Inventory is a popular collateral type for businesses in retail, manufacturing, or sectors where physical stock is held. Intellectual Property (IP): Patents, trademarks, and copyrights can also serve as collateral, though their valuation is often more complex. Avon River Ventures has experience valuing patents and IP assets, making them a viable option for tech- focused lenders. Equipment: Heavy machinery, vehicles, and other tangible assets can be used as collateral, particularly in sectors like construction, manufacturing, or transportation. Real Estate: Properties owned by the business can secure larger facilities, often used in sale-leaseback arrangements or term loans. Real estate offers high collateral value but comes with more rigorous appraisal and legal requirements. How Collateral Value is Determined? Determining the value of your collateral is a nuanced process that involves multiple factors. Lenders will look at: Market Value: The estimated selling price of the asset in its current condition. Liquidity: How quickly the asset can be converted into cash without significantly losing value. Depreciation: The asset’s reduction in value over time, which impacts its collateral worth. Discount Rate: A percentage reduction applied to account for the risk involved in selling the collateral. Net Collateral Value = Market Value × (1−Discount Rate) How is collateral used in the industry? To give some context, consider these recent industry statistics: 70% of non-bank lenders in 2023 used receivables as collateral due to their predictability and ease of valuation. 55% of loans in the alternative lending market were secured by multiple types of collateral, reflecting a diversified approach to risk management. Intellectual property-backed loans saw a 15% increase year-over-year, driven by growing tech and biotech sectors seeking to leverage intangible assets Taking a Strategic Approach to Collateral At Avon River Ventures, we believe that collateral is not just about mitigating risk—it's a strategic tool for enhancing your borrowing power. We assess your assets comprehensively, considering factors like market trends, potential for appreciation, and alignment with your business model. Our flexible approach allows us to accept diverse types of collateral, from traditional receivables to complex IP assets, tailoring each facility to maximize the value of your assets. Collateral-Driven Warehouse Line Background: In mid-2023, a fintech company specializing in unsecured consumer loans approached Avon River Ventures. The lender had a solid client base and strong revenue growth but lacked traditional physical assets for collateral. Their primary assets were receivables and proprietary algorithms used in loan underwriting. Challenge: The fintech firm struggled to secure a facility with other lenders because its asset base was unconventional. Many traditional lenders viewed their IP and receivables as high-risk, undervaluing their true worth. The company needed a partner who could appreciate the strategic value of its assets. Solution: Avon River Ventures worked closely with the fintech firm to structure a $7 million warehouse line, secured by their receivables and proprietary underwriting algorithms. Our team conducted a comprehensive valuation of their IP, considering industry trends and potential revenue growth, to ensure that the collateral was adequately leveraged. Results: The warehouse line allowed the fintech company to expand its lending capacity by 60% within six months. With the new facility, they were able to issue more loans, boost client acquisition, and solidify their market position. The IP valuation also increased the company's collateral value, providing a stronger foundation for future financing. Best Practices for Leveraging Collateral in Financing Here are a few best practices to consider when using collateral for financing: Diversify Your Collateral Base: Using multiple asset types can strengthen your position and improve your chances of securing favorable terms. Understand Your Asset’s Market Dynamics: Be aware of how market conditions can impact the value of your assets. Assets with high volatility may be discounted more heavily. Work with a Lender Who Values Your Assets: Choose a financing partner that understands your industry and can accurately assess the value of your assets. Avon River Ventures specializes in nuanced asset valuation, providing you with a true picture of your borrowing potential. Final Thoughts: Turning Collateral into Capital Collateral is more than just a safety net—it's a powerful tool that can unlock growth opportunities for your lending business. By understanding your assets, their potential value, and the right financing structure, you can turn collateral into a strategic advantage. Avon River Ventures is here to help you maximize that potential with flexible, tailored financing facilities that align with your goals. Avon River Ventures provides customized collateral-backed financing solutions designed to empower lenders. Whether you’re looking to leverage traditional assets or explore the value of intellectual property, we have the expertise to help. Contact us today to discover how collateral can be transformed into a powerful growth engine for your business.

Collateral Requirements for Lender Financing

Securing a financing facility often hinges on one critical element: collateral. For non-bank lenders, understanding...

Key Factors to Consider While Choosing the Right Facility for Your Lending Business

Key Factors to Consider While Choosing the Right Facility for Your Lending Business

For non-bank lenders, selecting the right funding facility is a pivotal decision that can drive...

Warehouse Lines for Growing Lenders

Warehouse Lines for Growing Lenders: How They Work and Their Benefits

In today’s competitive lending market, non-bank lenders face a common challenge: balancing rapid growth with...

Understanding Asset- Backed Securities (ABS) in Lender Financing

Understanding Asset-Backed Securities (ABS) in Lender Financing

For growing lenders, access to scalable, flexible capital is key to unlocking expansion. Asset-backed securities...