Warehouse to Term ABS Take-Out
Warehouse To Term ABS Take-Out
We arrange senior warehouse facilities with eligibility, advance rates, and reporting designed from day one for a term ABS take-out. The objective is predictable capacity, lower carry relative to performance, and documentation that transitions cleanly to a rated note issuance.
Facility $50M+ • Retainer $75K • Success 1.5–2.0% • Timeline 60–120 days • Structure Warehouse → Term ABS (Reg D or Rule 144A)
Eligible Issuers
Consumer, SMB, Equipment, RBF, CRE Bridge
Established servicing and reporting.Borrowing Base
Eligibility • Advance • Caps
By tenor, score/grade, collateral, geography.Controls
Triggers • OC • Concentrations
Aligned to observed pool statistics.Take-Out Path
Term ABS
Ratings, trustee, backup servicer prepared.Reporting
Monthly Strat & Static Pools
Loss/roll/curing and recoveries.3rd Parties
Trustee • Backup • VA
RFPs, fee schedules, and handover tested.Investor Base
Private Credit • Insurers
QIBs (144A) or accrediteds (Reg D).Minimums
$50,000,000+
Aggregation possible; pricing may adjust.Scope calibrated to collateral; frequency aligned to triggers and borrowing base resets.
Lockbox/ACH controls, collateral trustee arrangements, and tested sweep mechanics.
SOC 1 Type II/ISAE 3402 preference; audit trails and exception management.
Full UBO verification before documentation; ongoing screening thereafter.
Scope Of Work
| Deliverable | Detail |
|---|---|
| Warehouse Term Sheet | Advance rate matrix, haircuts, eligibility and concentration limits, amortization and clean-down mechanics, triggers, covenants. |
| Reporting Stack | Borrowing base certificate, strat reports, static pools, exceptions schedule; cadence designed for ABS readiness. |
| 3rd-Party Appointments | Trustee, backup servicer, and valuation agent RFPs and awards; fee schedules and operational handover plans. |
| ABS Take-Out Plan | Rating pathway, preliminary strat tables/model, investor grid (private credit/insurance), and execution calendar. |
Economics & Controls
| Term | Market Practice | Notes |
|---|---|---|
| Advance Rate | By segment; performance-linked | Adjusted for EL, seasoning, collateral, and volatility. |
| Concentration Limits | Score/grade, tenor, geography, obligor | Hard caps mitigate tail risk. |
| Triggers | Delinquency, charge-off, roll metrics | Increase OC, reduce advance, or restrict outflows. |
| Valuation Agent (VA) | Monthly/quarterly as required | Independent collateral valuations support investor confidence. |
| Transition To ABS | Pre-baked rating work | Trustee/backup appointed; disclosure and models developed. |
Illustrative Timeline (60–120 Days)
| Week | Milestone |
|---|---|
| Weeks 1–3 | Data-tape QA; scope confirmation; initial warehouse term sheet parameters; trustee/backup/VA RFPs. |
| Weeks 4–7 | Negotiation of eligibility and advance matrices; reporting templates finalized; draft documentation. |
| Weeks 8–10 | Credit approvals; 3rd-party awards; borrowing base certification process tested; preliminary ABS pack prepared. |
| Weeks 11–16 | Signing and initial funding; ABS investor soft-circles; rating engagement as required. |
Readiness Checklist
- Loan-level fields: origination, APR/fees, term, balance, score/grade, collateral type, geography, sector.
- Performance: status, DPD, charge-offs/cures, roll rates, recoveries, seasoning, restructures/forbearance flags.
- Static pools: monthly vintage curves by segment; definitions consistent with servicing.
- Servicing SOPs: collections workflow, QA/exception handling, audit logs; named backup servicer.
- Governance: UBO/KYC and sanctions, financial statements, cybersecurity and access controls.
Fees, Minimums, And Terms
| Item | Terms | Notes |
|---|---|---|
| Minimum Facility | $50,000,000+ | Aggregation of smaller pools is workable; economics may adjust. |
| Retainer | $75,000 (non-refundable) | Funds data, third-party processes, and documentation lift. |
| Success Fee | 1.5–2.0% of funded amount | Payable at closing; tiered by size and structure. |
| Timeline | 60–120 days | Contingent on complete data and timely responses. |
Provide product type, UPB, months on book, sample data-tape headers, and any existing warehouse drafts. We will respond with parameters, third-party plan, and an execution calendar.
Minimums & Fit
- Post-revenue platforms with EBITDA ≥ $10M.
- ≥ 12–24 months of reconciled performance data and static pools.
- Servicing SOPs, trustee/backup/VA readiness, clean KYC/AML and sanctions.
- No PPP/MTN “platform” claims. We transact on verifiable assets and cash flows.
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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