Debt Facility

Founders often obsess about the economics of their credit facility: the advance rate, the spread, the eligibility triggers, the covenants. And they should. These terms determine the oxygen supply for the business. But there’s another variable that rarely shows up in a spreadsheet — yet often matters far more: The quality of the lender relationship. In the early stages, many fintechs underestimate the value of a lender who is reasonable, responsive, and collaborative. But ask

For growing fintech lenders, renegotiating a credit facility is both an art and a science. Most companies approach it as a purely financial negotiation — rate, advance rate, covenants, prepayment terms. But the strongest negotiating position rarely comes from spreadsheets alone. It comes from performance data . A fintech we worked with had completed almost two years under its first institutional debt facility. When they entered the facility, the business was young: limited co