Issue No. 34

As a reminder, we provide senior secured, asset-backed credit facilities to lenders. Our borrowers use that capital to originate loans, advances, receivables, and other contractual cash flows. With that in mind, I wanted to use my section today for a brief note to our borrowers:

Most of you already know this, but every so often we get the sense someone’s holding back on telling us they’re exploring a larger refinance or thinking about upsizing. No need. We understand that most capital partners aren't thrilled to be taken out early. We are! A successful “graduation” is our goal. If your business has scaled to the point where a larger facility makes sense, that’s exactly the outcome we’re working toward alongside you.

It’s also just good business on our end. Some of our best economic outcomes come from early payoffs, and with a deep pipeline, redeployment isn’t an issue for us. More importantly, we can be helpful. We spend a lot of time in the market and are often in a position to share perspective, make introductions, or think through structure as you evaluate next steps. We're not a gatekeeper to your graduation to a larger, less expensive facility. We're rooting for the same outcome.

— Jillian

When you start a new loan originator, you hire counsel who puts in place some loan docs they may have used once or twice. I'm willing to bet we can suggest better terms for your loan docs.

We've provided more than a hundred credit facilities now. We've vetted in the thousands. And we've purchased loans from dozens of originators. We haveseen sample loan docs from almost every one.

In addition, we've actually seen the loans through from start to finish. We see what jurisdictions matter for collecting, servicing, usury, and getting judgements. We've seen when or how arbitration works better than legal proceedings and vice versa. We can tell you terms that will screw things up for you or your borrowers down the road.

So, going forward, we are putting all of that knowledge into an AI agent of ours and vetting all loan docs that come through on each new deal. The agent can tell us where risks are and what could be easily improved upon. Fortunately, most of the counterparts we work with are still at a stage where it is relatively easy to adjust loan docs.

I'm very excited for this new value add feature we can provide that likely couldn't be done without AI.

- Conor