Structured and Other Debt

Short-dated credit to a defined event: a closing, a financing round, an asset sale, a distribution from a fund. The loan is underwritten on the certainty and timing of the event and secured on what it produces or on other assets in the interim. Bridge loans carry a defined repayment source and a plan for what happens if the event is late.

Capital repaid as a fixed share of the borrower’s revenue until an agreed multiple is returned, rather than on a fixed schedule. It suits businesses with recurring, observable revenue and lumpy growth. The underwriting is of the revenue stream: its predictability, concentration and the lender’s ability to verify it directly, through permissioned read access to the payment processor and bank accounts that record it, with a UCC-1 filed over receivables and proceeds and, where the processor allows, remittance split at the processor.

Wesvel can share a facility with other lenders through participations, or commit in advance to purchase loans an originator will make under agreed criteria through a forward-flow agreement. Participations spread exposure and let the book take part in facilities larger than it would hold alone, under a participation agreement that fixes the lead lender’s servicing duties, voting rights and the participant’s share of every dollar collected; forward flow gives an originator certainty of funding and the book a pipeline of assets it has already underwritten by criteria, each delivered with its own lien search and perfected assignment.

Where a position is best held outside the commingled fund, a single facility, a pool of related loans or a structure with its own investors, it is placed in a dedicated vehicle that issues notes or interests to those investors. The vehicle holds the credit and nothing else; its terms, eligibility and fees are set out in its own documents. This is the same mechanism the ventures business uses for single-asset positions, applied to credit.