FLOCK’s Capital and Expertise Deal with the Complexities of the Below-Prime Markets
“FLOCK understands that traditional methods of determining risk are not adequate for the underserved markets. Our underwriting, analytics, and compliance reviews are designed to define the risk; but then help reduce the risk that the below-prime and charged-off market segments create.”
Damon Edmondson, Chief of Analytics
FLOCK Portfolio Funding is Flexible, Fair and Fast
FLOCK’s funding is designed to provide flexible portfolio capital for clients who spend $1 to $50 million annually. FLOCK’s proprietary structure is designed to provide flexible, fair and fast funding solutions. These solutions benefit different portfolio asset classes, in multiple market segments, that include: credit card, auto, merchant credit, medical liens and tax liens. We understand that doing business in regulated and supervised industries impacts a client’s capital decisions.
- Advance rates 70% to 90%
- Servicing fees negotiated on a deal to deal basis
- Negotiated equity split
- Parallel Payback enables clients to be paid back at same time as FLOCK
- Portfolio is the collateral
- Funding within a week after initial company due diligence
FLOCK Uses a Joint Venture Funding Structure
FLOCK uses an off balance sheet structure for funding portfolios. Portfolios that FLOCK funds are placed in a Special Purpose Vehicle (SPV) that is controlled by our clients. Each SPV has the required legal documentation that creates the structured agreement between FLOCK and its client partners.
FLOCK’s Client Underwriting Criteria for Approval
Our clients are servicers of charged-off and below-prime credit, representing a variety of asset classes. Potential clients are firms that that underwrite, originate or purchase portfolios that they collect.
The four criteria for approval are:
- A track record of successful performance
- A consistent pipeline of Accounts
- Solid Financials
- Quality management team and processes
After client approval, each portfolio is jointly underwritten for funding.
FLOCK Provides M&A Services
FLOCK is known for its superb execution skills, in depth mergers and acquisition experience, and unparalleled personal attention. Unlike general purpose investment banks, FLOCK has a unique combination of industry and operational experience that differentiates its services. This differentiation is seen in our passion to produce something big, perseverance to achieve the difficult and a performance record that exceeds expectations.
Services we offer include:
- Capital raising
- Merger assistance
- ‘Balance Sheet’ consulting
- ‘Income Statement’ consulting
- Financial exit
We provide our clients with industry expertise and customized attention—in a nutshell, more than just a transaction. We have the industry and operational experience that can help position your company for accelerated organic growth, external acquisition or exit.
For companies considering a sale, FLOCK will help you understand the potential value that can be unlocked, make the changes necessary to maximize firm value, and manage all aspects of any eventual offering and transaction.
Questions we address include:
- Does your present funding facility able to meet future funding needs?
- Can it provide more capital for larger portfolios required for shifting industry?
- Can it provide capital for infrastructure requirements needed for compliance?
- Can your financial facility balance both needs?