Forward-Flow & Whole-Loan Sale Advisory
Forward-Flow & Whole-Loan Sale Advisory
For specialty finance originators, a committed forward-flow or a clean bulk sale is often the difference between scaling and stalling. We structure buyer-ready packages, run disciplined processes with private credit and insurance counterparts, and close with clear representations, surveillance, and recourse mechanics that protect both sides.
Transaction Modes
Forward-Flow • Bulk Sale
Committed purchases or one-time UPB sale.Buyer Universe
Private Credit • Insurers
Programmatic and opportunistic mandates.Core Deliverables
Buyer Grid • Data-Tape QA • PSA
R&W framework and surveillance design.Economics
Par/Discount • Reserves
Purchase rate curves, holdbacks, and fees.Controls
Eligibility • Concentrations
Early buybacks and dispute process.Operations
Servicing SOPs
Backup servicer and custodial control.Reporting
Static/Dynamic Pools
Vintage curves and roll metrics.Minimums
$25M UPB+
Aggregation possible; price may adjust.Clear R&W schedule, breach definitions, cure/buyback timelines, and indemnity caps.
Documented SOPs, performance triggers, and backup servicer with dormancy testing.
Lockbox/ACH controls, custodial documentation, and UCC filings where applicable.
Loan-level field dictionary, reconciled static pools, and audit trails; preference for SOC 1 Type II servicers.
Who This Fits
- Consumer/SMB lenders: installment, BNPL, MCA, factoring, term loans.
- Equipment finance: small- and mid-ticket contracts.
- Revenue-based finance: recurring revenue streams with enforceable assignment.
- CRE bridge lenders: short-tenor, high-velocity loan books.
Scope Of Work
| Deliverable | Detail |
|---|---|
| Buyer Grid & Process | Targeted list across private credit and insurers; staged outreach; NDAs; data room hygiene; calibrated bid instructions. |
| Data-Tape QA | Field checks and reconciliations; static/dynamic cohorts; loss/roll curves; exceptions schedule; sample files. |
| PSA & R&W Framework | Eligibility, concentrations, reserves/holdbacks; purchase rate curves; breach/cure; early buy-backs; dispute resolution. |
| Servicing & Surveillance | Servicing SOPs; reporting packs; performance triggers; backup servicer RFP/award; monthly surveillance metrics. |
| Closing & Onboarding | Confirm data-to-cash controls; custodian and lockbox; first settlement calendar; post-close governance cadence. |
Economics & Controls
| Term | Market Practice | Comments |
|---|---|---|
| Purchase Price | Par or discount to par | Driven by EL, seasoning, and yield profile. |
| Reserves/Holdbacks | 0.5%–3.0% typical | Released on performance; aligns incentives. |
| Servicing Fee | bps over UPB | Varies with complexity and roll rates. |
| Eligibility & Concentrations | By product, tenor, score/grade, geography | Hard caps limit tail-risk exposure. |
| Buyback/Put | For R&W breach and specific defects | Timelines and dollar caps specified. |
| Reporting | Monthly strat & static pools | Loss, roll, curing, and recoveries tracked. |
Illustrative Timeline (45–90 Days)
| Week | Milestone |
|---|---|
| Weeks 1–2 | Data-tape QA, scope confirmation, buyer grid finalized, NDAs issued, data room prepared. |
| Weeks 3–5 | Indications of interest, confirmatory Q&A, first-round terms; PSA and R&W framework drafted. |
| Weeks 6–8 | Final bids and allocations; backup servicer award; operational playbook agreed. |
| Weeks 9–12 | Documentation signing, initial purchase or first settlement, surveillance cadence set. |
Readiness Checklist
- Loan-level fields: origination, APR/fees, term, balance, credit score/grade, secured/unsecured, geography, sector.
- Performance: status, DPD, charge-offs/cures, roll rates, recoveries, seasoning, restructures/forbearance flags.
- Static pools: monthly vintage curves by segment; clear mapping to servicing definitions.
- Servicing SOPs: collections workflow, QA/exception handling, audit logs; backup servicer shortlist.
- Governance: UBO/KYC and sanctions, financial statements, cybersecurity and access controls.
Fees, Minimums, And Terms
| Item | Terms | Notes |
|---|---|---|
| Minimum Size | $25,000,000+ UPB | Larger commitments ($50M–$100M+) recommended for programmatic flow. |
| Retainer | $62,500 (non-refundable) | Funds data work, buyer process, and documentation lift. |
| Success Fee | 2.0% (forward-flow) / 1.0–1.5% (bulk sale) | Payable at settlement; tiered by size and structure. |
| Timeline | 45–90 days | Contingent on complete data and timely responses. |
Request Your Term Sheet
Provide product type, current UPB, months on book, recent static pool summaries, and sample data-tape headers. We will revert with price expectations, buyer grid, and a settlement calendar.
Minimums & Fit
- Post-revenue platforms with EBITDA ≥ $10M.
- ≥ 12–24 months of portfolio performance and reconciled static pools.
- Servicing SOPs, backup servicer readiness, clean KYC/AML and sanctions.
- No PPP/MTN “platform” claims. We transact on verifiable assets and cash flows.
FAQ
Forward-flow or bulk sale — which should we choose? Use forward-flow for ongoing originations with predictable cadence; use bulk sale to monetize a closed book or rebalance risk quickly.
How are purchase rates set? By expected loss, seasoning, roll dynamics, and servicing effectiveness. Buyer cost of funds and liquidity also influence the curve.
What triggers buybacks? Explicit R&W breaches, documentation defects, and specific eligibility failures within defined windows.
Do we need a backup servicer? Yes. Many buyers will not proceed without a named backup and a basic dormancy test plan.
Financely provides investment and merchant banking advisory on a best-efforts basis. All engagements require KYC/AML, appropriate financial statements, and paid milestones. Any securities-related activities, where applicable, are conducted through a licensed chaperone, Member FINRA/SIPC. This page is informational and not an offer or solicitation.
Get Started With Us
Submit Your Deal & Receive a Proposal Within 1-3 Working Days
Submit your deal using our secure intake form, and receive a quote within 1-3 business days. Existing clients can connect with their relationship manager through our secure web portal.
All submissions are
promptly reviewed, and all communications are conducted through the intake form or the client portal for a seamless and secure process.
Thank you for considering working with us. A nominal fee of US$500 is required upon completion of each form. This fee covers the time and effort we invest in reviewing your submission and crafting a thorough proposal. We receive numerous inquiries and prioritize those that carry this fee, ensuring serious applicants receive prompt attention.
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