Simplifying Your Fintech Funding Strategy

One of the most common conversations we have with fintech entrepreneurs looking to launch a new financial product is about determining the right strategy for funding their business. Whether you’re a vertical software company looking to launch a factoring product (selling accounts receivables at less than par), or a fintech lender trying to finance a new asset class, choosing the right funding structure can have a meaningful impact on the trajectory of your company, its ability to scale, and your bottom line.

In our new four-part debt series, we’ll walk through 1) choosing the right…

Far too often, we see early stage founders focus exclusively on finding the lowest cost of capital. From our collective experience helping startups raise dozens of facilities and working with a variety of lenders, we believe that this approach can overlook many other—and often more important—variables that can have a significant impact on a company’s trajectory, especially for those companies still looking to find product-market fit.

Our belief is that one’s capital markets efforts should be an enabler for future growth and never a bottleneck. As a result, it’s critical for one’s strategy…

At this point, your company has decided to raise debt or at least would like to explore the option… where do you start?

If this is your first time embarking on a debt raise, it can be a daunting task, particularly given the sheer number of options, structures to consider, resources required, and ever-evolving debt provider landscape. Successfully getting a facility in place takes time and effort, but the more prepared you are and the more you can stick to a timeline, the easier (and more efficient) your process will be…

Congratulations! After weeks (or months) of negotiating, you’ve finally closed on your facility. If you’ve drawn on a line from your venture debt facility, money has been wired to your business banking account. Or if you’ve raised a warehouse, you can now fund and originate loans that will be repaid by a financing partner.

What happens now?