Forward Flow vs Warehouse Facility for Originators
A warehouse is leverage on assets you keep. A forward flow is a sale. On MCA paper the buy commonly prints at 80 percent, 85 percent, or 90 percent of each funded advance. A warehouse commonly advances 80 to 95 percent of eligible collateral.
Published: ·Last updated: ·By Ed Freeman, Capital Advisor. PeerSense
What is the difference between forward flow and a warehouse facility for originators?
A warehouse facility is leverage: you borrow against receivables you keep at 80 to 95 percent of eligible collateral and earn the full spread. A forward flow is a sale. On MCA paper the buy commonly prints at 80 percent, 85 percent, or 90 percent of each funded advance. CRE often prints at par or a premium. The desk works 10 million a month. The core book is 25 million to 100 million plus a month. Many originators run both.
Originate 10 million a month or more? Talk to the desk.
Monthly volume, months of history, equity position, and goals. You get an honest read on whether a warehouse, forward flow, both, or seasoning first is the right move. Confidential.
institutional: Response within 24–48 hours. No obligation.
Forward Flow vs Warehouse Facility, Side by Side
| Dimension | Warehouse facility | Forward flow |
|---|---|---|
| Who owns the assets | You keep the receivables on your balance sheet | The buyer purchases the receivables outright |
| Funding per unit | 80 to 95 percent of eligible collateral; you fund the equity gap | MCA commonly 80 percent, 85 percent, or 90 percent of each funded advance. CRE often at par or a premium. |
| Who holds the risk | You keep the credit risk and the full spread | The buyer takes the credit risk inside the agreed box |
| Upside | You earn the full spread over the facility cost | You earn the residual after the buy plus servicing |
| Balance sheet | Assets and matching debt stay on your books | A true sale moves the assets off your balance sheet |
| Capital certainty | Revolving availability against your borrowing base | A committed buyer purchases on a schedule, up to a cap |
| Servicing | You service and keep the borrower relationship | You usually keep servicing; buyer owns the economics |
| Best when | You want to keep the assets, the upside, and control | You want to move risk and lock committed, repeatable capital |
When Each Structure Fits
Choose a warehouse when
- You want to keep the assets, the full spread, and control
- You have the equity to fund the gap per unit
- You want revolving flexibility rather than a committed cap
Choose forward flow when
- Equity is your binding constraint and you want to grow volume
- You want credit risk off your balance sheet
- You want committed, repeatable capital
Dedicated guides: warehouse lines for originators and forward flow funding.
How PeerSense Helps You Choose and Place
PeerSense sources capital through a curated network of commercial lenders and capital sources. Routing is grounded in data across 5,475 lenders and 2.1 million loans, with 899 credit boxes profiled.
Compensation is set in a written agreement and paid at closing only.
Ready to pick the structure that fits your book?
Monthly volume, months of history, equity position, current funding source. You get a structure recommendation and, where the fit is real, a confidential introduction.
institutional: Response within 24–48 hours. No obligation.
Forward Flow vs Warehouse: Questions Operators Actually Ask
Deals We Structure
Representative profiles from the placement desk and from the forward flow network tape. Sizes and structures only. No counterparties named.
$12M Hilton flag hotel, Charlotte, NC
6.75% fixed | 65% LTV | 52 day close
$8M value add multifamily, Tampa, FL
SOFR +395 | 75% LTC | 14 day close
$6.5M mixed use development, Austin, TX
80% LTC | Interest only | 18 mo term
$2.8M QSR franchise (3 units) Indianapolis, IN
Prime +2.75% | 25 yr term. Equity injection is lender underwriting.
$3.2M/mo manufacturing AR, Cleveland, OH
1.5% factor fee | 90% advance | 48 hr funding
$1.8M 6 unit rental portfolio, Phoenix, AZ
7.25% | 75% LTV | No income docs | 1.25x DSCR
$350M to $1.5B committed purchase of future originations
True sale | Par or premium to UPB | Weekly or monthly settlement | Servicing usually retained
$100M to $500M revolving line against eligible receivables
80 to 95% advance | 2 to 3 year revolver | Often paired with a flow takeout
$200M seasoned pool sold in one trade
Priced off the tape | Off balance sheet at settle | Cash recycles into new production
Indicative only, as of August 1, 2026. Not a quote, commitment or offer of credit. Final pricing, leverage and terms are determined by the lender at underwriting, after full transaction materials are reviewed. PeerSense does not lend and does not set pricing. What these terms mean.