Lender Finance for Specialty Finance Companies
Lender finance is the institutional product most specialty finance companies are really looking for when they search for capital: a senior facility or warehouse line secured by your receivables that finances the book so you can keep originating. Here is what lender finance is, which specialty finance companies qualify, what providers require, how it is priced, and how it compares to selling flow.
Published: ·Last updated: ·By Ed Freeman, Capital Advisor. PeerSense
What is lender finance for a specialty finance company?
Lender finance is credit extended to lenders and financing companies rather than to end borrowers: senior credit facilities and warehouse lines secured by a specialty finance company's receivables through a borrowing base, so the company can keep originating. The provider underwrites both the collateral and the operator. It is available across real estate, equipment, consumer, small business, MCA, revenue based financing, and other specialty asset classes, requiring 12 to 24 months of verifiable, vintage level track record, first position, tangible net worth, and a reconciled tape. Bank desks are the cheapest and strictest; nonbank funds cost more and flex more; shorter duration, higher loss classes carry wider spreads. PeerSense advises and places specialty finance companies with these capital partners and is paid at close; it is not a lender and does not provide the capital.
Run a specialty finance company? Tell us what you originate.
Asset class, monthly volume, months of history, and how you fund today. You get an honest read on which structure fits and whether a capital partner in our network matches. Confidential.
institutional: Response within 24–48 hours. No obligation.
What Lender Finance Is, and Why It Exists
A specialty finance company originates faster than its own capital allows. Lender finance solves that: an institutional provider lends against your receivables through a borrowing base, advancing a portion of eligible collateral while you fund the equity gap. You keep the assets, keep servicing, and earn the full spread between what your borrowers pay and what the facility costs. As borrowers repay, you repay and redraw, recycling capital far faster than equity alone would allow.
Lender finance sits between the small, expensive world of private capital and the heavy infrastructure of securitization. It is the workhorse structure that carries a seasoned originator from a few million a month to real scale, and it is the same product whether it is called a warehouse line, a senior credit facility, or a lender finance facility. The dedicated guide to the mechanics: warehouse lines and lender finance.
Which Specialty Finance Companies Qualify
More kinds than most operators assume. If the collateral produces documented, verifiable cash flows and the operator has a seasoned track record, a facility provider or buyer likely exists. Common asset classes that raise lender finance:
Merchant cash advance and revenue based financing
High yield, short duration receivables. Wider spreads and lower advance rates than real estate, with the no stacking policy and loss curve driving terms.
Equipment finance and leasing
Hard collateral behind the paper. A well understood, deep lender finance lane with strong advance rates on quality receivables.
Consumer and point of sale
Installment and point of sale receivables, funded through senior facilities and forward flow programs at scale.
Small business lending
Term loans and lines to small businesses, funded through senior credit facilities as vintages season.
Real estate lending
Bridge, fix and flip, construction, and rental originators, the deepest and most liquid lender finance lane.
Litigation, medical, and other receivables
Specialty receivables funded through revolvers, often via bankruptcy remote structures.
Bank vs Nonbank Lender Finance: Cost vs Flexibility
Lender finance providers fall into two camps, and the right one depends on your stage. Bank lender finance desks offer the cheapest capital and the strictest gate: conservative advance rates, tight eligibility, and a preference for seasoned, lower loss asset classes. Nonbank lender finance funds cost more and flex more: they will look at shorter track records, higher loss classes like MCA, and structures a bank will not, in exchange for wider spreads.
Most originators start with a nonbank fund that understands their asset class, then graduate to bank pricing as their loss curves prove out. The difference in your economics is usually driven less by the headline rate than by the advance rate and the eligibility box. These are market typical patterns, not guarantees, and matching your profile to the right camp is most of the value an advisor adds.
How PeerSense Places a Lender Finance Mandate
PeerSense is a capital advisory and placement firm, not a lender, and it does not provide the capital itself. The edge is routing discipline grounded in data: lending and capital patterns analyzed across 5,475 lenders and 2.1 million loans, with 899 credit boxes profiled, including which lender finance providers genuinely fund your asset class at your stage, bank or nonbank, and which only say they do.
We pre underwrite your platform the way a provider will, tell you honestly which rung you are on, and introduce the one or two capital partners in our network whose mandate matches, quietly, without shopping your tape. A lender finance facility is a debt transaction, so this is debt advisory, not a securities placement, and it does not require a securities license. Compensation is set in a written agreement and paid at closing only.
Ready to finance the book you are already building?
Asset class, monthly volume, months of history, current funding source. You get a structure recommendation and, where the fit is real, a confidential introduction to a capital partner in our network.
institutional: Response within 24–48 hours. No obligation.
Lender Finance: Questions Specialty Finance Operators 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.