Client Access

Search
accord services lender financing hero

Lender Financing up to
$20 Million

BOOST YOUR LENDING POWER WITH A TAILORED LENDER FINANCE SOLUTION. OUR FLEXIBLE CREDIT FACILITIES GROW WITH YOUR COMPANY’S SUCCESS.

When your lending business needs working capital to grow, who best understands what it takes to lend more effectively than the banks? The answer: Accord. As a specialty lender with over 40 years of experience, Accord knows what it takes to thrive.

We approach lender financing with unique expertise developed over four decades of providing creative financing solutions. We have unparalleled insight into the value of your most important asset – your loan portfolios. If you need to maximize liquidity by unlocking the value within your portfolio, call Accord today.

The last decade has brought tremendous change in the world of specialty finance. The uncertain economy, interrupted by the credit crisis, regulatory response, followed by unprecedented technological progress has created both challenges and opportunities for specialty finance companies.

Most banks and traditional lenders are handcuffed by federal regulations that prevent them from serving finance companies effectively. Therefore, many won’t understand your business due to lack of experience, or will be leery to finance a company that makes loans they themselves wouldn’t finance. Either way, this can be a slow and arduous process that doesn’t fit the timeline for your financing needs.

As a highly experienced specialty finance lender, Accord understands the unique financing needs of your business. Lender financing is a unique financial service that Accord has been mastering for many years.

Like many alternative lenders you have a terrific opportunity to grow with financing beyond what your bank can provide. Your market is expanding and your portfolio is growing. You need more than just a loan. You need a creative partner with deep lender-to-lender financing experience.

Accord is that partner to help your lending business succeed.

Accord is comfortable working with lenders across a wide range of alternative products and markets. If you have a history of successful underwriting, we’re ready to help take your business to the next level.

We work hard to provide a debt buyer finance package that will maximize your potential loan portfolio growth. A successful lender finance relationship starts with these elements:

  • Satisfactory portfolio of loans
  • Appropriate credit criteria related to the market you serve
  • Strong culture of regulatory compliance and credit review
  • Adequately capitalized balance sheet
  • Effective technology and operating systems for reliable closings
  • Complete and timely portfolio reporting.

As your presence in the market continues to build, the last thing you need is to turn away potential borrowers because you lack the funds to finance them. Solve this problem today; boost your lending power with lender financing from Accord.

From factoring to consumer lending, our business is your business

If your core business centers around one of the following lending models, we can help you grow your loan portfolio:

  • Automobile finance and leasing
  • Factoring and asset-based lending
  • Consumer receivables
  • Merchant cash advance
  • FinTech
  • Other specialty lending segments

Accord has an experienced and dedicated team with a unique lender-to-lender financing philosophy that will take the time to understand what your company needs to thrive.

We are committed to understanding your business model and the challenges you face. Plus, our team has unique insight earned through many business cycles and lengthy experience in lending to finance companies. So in addition to securing the financing you need, you’ll have one of North America’s most experienced lenders on your side. We’re here to help with issues and ideas anytime.

Our industry best practices, tailored due diligence and flexible loan programs enable you to:

  • Derive maximum borrowing power from your portfolio assets
  • Secure an asset-based lending facility designed to meet your unique needs

When you use lender-to-lender financing, you leverage the capital in your business and grow your loan portfolio without diluting your equity. In working with a specialty lender, like Accord, that has experience providing lender-to-lender financing to a wide variety of finance companies—including fintech lenders—you will benefit from working with a lender that truly understands the lender finance business.

A lender with an established lender-to-lender finance program will provide you with a stable and reliable source of capital while reducing the complications that arise from borrowing funds from other sources, such as friends and family or hedge funds, whose objectives may differ from yours.

Put the financial strength, experience and independent thinking of Accord to work for you, with lender to lender financing up to $20 million. Make our experience your advantage.

accord services lender financing faq

Frequently Asked Questions

Lender-to-lender financing is the process where a lender, such as Accord, provides an operating line of credit or term loan facility to traditional or fintech lenders engaged in consumer or commercial finance. These advances are secured by your portfolio of outstanding loans. We have 43 years’ experience in lender-to-lender finance and understand the unique financing needs of lenders.

When you use a lender-to-lender financing facility, your existing loan portfolio acts as collateral, allowing you to borrow against the eligible transactions within your loan portfolio. With access to a lender-to-lender loan facility, you will have additional funds to make more loans and grow your traditional or fintech loan portfolio.

Some of the most common financial structures used for lender finance include:

  • Equity investment
  • Lender-to-lender financing via term loans with minimum draws and structured payment arrangements
  • Lender-to-lender operating lines of credit which revolve with your financing requirements
  • Loan sales, participations or syndications through which you transfer all or part of your ownership interest in a group of loans

When it comes to lender finance options, raising equity is typically the most expensive form of capital, as you are selling an interest in your business on a permanent basis and giving up a share of all future earnings. One advantage of raising equity is that an increased equity base may help you in accessing lender-to-lender financing in the future.

When you use loan sales and participations as a source of lender financing, you are giving up a large portion of the revenue of the loans that you are selling. These lost revenues relate only to the life of the loan and may be offset by a premium paid by the buyer and a management fee that you may charge during the life of the loan.

Lender-to-lender financing is often the most inexpensive financing option for a traditional or fintech lender. With a lender-to-lender financing facility, you pay a fixed interest rate and do not give up a share of your revenue. Lender-to-lender financing structured as an operating line of credit is very flexible because the amount of the loan fluctuates with changes in your portfolio of traditional or fintech loans. You only pay interest on your lender-to-lender finance facility for funds that you borrow to deploy in your portfolio. A lender-to-lender facility allows you to maintain control and ownership of all the loans you originate.

As a finance company or fintech lender seeking lender financing, you have multiple options, including:

  • Direct investment from existing shareholders, friends, family or new shareholders
  • Lender finance capital provided by private lenders
  • Capital provided by hedge funds and or other investment funds seeking high yield returns
  • Lender-to-lender financing through loans from banks or non-bank financial institutions

Through our lender-to-lender finance program, we provide financing to both commercial lenders and consumer lenders. We work with companies whose focus is in the non-prime or subprime lending space and offer lender-to-lender financing to a variety of sectors, including:

  • Factoring companies
  • Merchant cash advance companies
  • Auto financing & auto leasing
  • Small business loans
  • Short-term personal loans
  • Fintech lenders

Structuring your lender-to lender finance facility as a revolving line of credit provides flexibility in that you only draw funds and pay interest when the funds are deployed within your portfolio. By comparison, with lender-to-lender financing structured as a term loan, you pay interest on the loan even if you have not deployed the funds.

It is important for you to find a lender that is the right fit for your lender-to-lender financing needs. Some key points to consider when selecting a lender to provide you with a lender-to-lender financing facility are:

  • Does the lender have an established track record in the lender-to-lender financing space?
  • Does the lender understand traditional and fintech lending?
  • Does the lender have the capacity to increase your lender-to-lender financing facility and keep up with your growth?
  • Will the structure of the lender-to-lender loan facility allow you to access an adequate amount of leverage?
  • Does the lender have a stable source of funding for their own business?
  • Do you have direct access to deal with senior management and decision makers?
  • Can the lender supply you with positive references from other traditional or fintech lenders that they have provided lender-to-lender financing to?
  • Accord Financial meets all of these criteria—contact us directly to see how we can structure a lender-to-lender financing facility to meet your needs: +1-800-967-0015.