Covenants exist for a reason: they protect lenders from unexpected degradation in portfolio quality, capital structure, or liquidity. But early-stage facilities often contain covenants that reflect a lender’s fear — not the actual risk of the portfolio. As the business matures, founders naturally want those covenants relaxed. That’s smart. But the how matters. Here’s a practical framework that keeps lenders collaborative instead of defensive. 1. Start With a Partnership Fram

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

A tactical guide for fintech founders planning to fund credit at scale You’ve validated the product. You’re ready to scale. Now comes the big question: where’s the capital coming from? For fintech teams launching credit card products, getting a debt facility in place is one of the most important—and misunderstood—steps in building a durable lending business. If you’re planning to originate credit at scale, you’ll eventually need outside capital to do it. But not all debt is c

Lending is a cash flow business. Every decision you make — from marketing spend to credit policy to pricing — has a long-term economic...