Private credit lenders to specialty finance companies

Specialty finance companies looking for a credit facility to fund their loans or receivables.

Short answer

How do you choose a private credit lender for a specialty finance company?

Specialty finance companies, such as consumer, commercial and litigation finance platforms, often fund the loans or receivables they originate with a senior secured credit facility from a private credit lender. When you compare lenders, look at the asset types they finance, the facility sizes they work with, how they structure a facility, and how their diligence and closing process works. This directory lists lenders by what they say they finance. It does not rank them.

The OpenlyCompared directory of private credit lenders to specialty finance companies explains what to compare, which questions to ask and which warning signs to look for. The first companies are being checked before they are listed.

Which lenders are listed?

We are verifying the first companies for this guide. Each listing is built from facts the company has published, and checked before it goes up.

What should you compare when choosing a private credit lender for a specialty finance company?

Asset types financedLenders tend to specialize: consumer loans, small business loans, receivables, or litigation finance, for example.

Facility sizeMany lenders state the range of facility sizes they work with; it tells you whether a conversation is worth having.

StructureWarehouse lines, forward flow arrangements and term facilities fund a platform in different ways.

Diligence and closingAsk what data they need from you and how the process from first call to closing runs.

ReportingUnderstand the reporting a facility will ask of you once it is in place.

Who decidesKnow who makes the credit decision and how they communicate it.

What should you ask before choosing a private credit lender for a specialty finance company?

Which asset types do you finance, and at what facility sizes?
Which structures do you offer: warehouse, forward flow or term?
What data do you need from us to start, and in what format?
How does your process run from first call to closing?
What reporting will the facility require once it is in place?

What are the warning signs when choosing a private credit lender for a specialty finance company?

Terms that change materially after a term sheet without explanation
Unclear reporting requirements
No clarity on who makes the credit decision

Frequently asked questions about private credit lenders to specialty finance companies

What is a warehouse facility in specialty finance?

A warehouse facility is a revolving credit line, secured by a pool of loans or receivables, that a specialty finance platform draws on to fund new originations.

What is a forward flow arrangement?

A forward flow arrangement is an agreement under which a buyer purchases loans or receivables from a specialty finance platform as they are originated, on terms agreed in advance.

What does a private credit lender look at before providing a credit facility?

Before providing a credit facility, a private credit lender usually reviews the platform's origination and servicing practices, its loan-level data and loss history, its management team and its capital.

Is this private credit directory investment advice?

The OpenlyCompared private credit directory is not investment advice. The directory is information for businesses looking for financing, not an offer of any security, and it contains no information about investing with any lender.

Important. This directory is information for businesses seeking financing. It is not investment advice or an offer of any security, and it contains nothing about investing with any lender.

How this page works: companies are listed by the method on our Methodology page. Companies marked “Toutmark client” pay Toutmark, which publishes OpenlyCompared; paying never buys a position or an award. Request a correction.