FLOCK Funding is designed to provide flexible portfolio capital for clients who spend up to $50 million annually.

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FLOCK Funding is:

More than a transaction

Funding that is customized to our client’s capital needs

Funding that allows our clients to capitalize on market opportunities

Funding that provides clients with capital solutions to grow their business

Funding is supported by a team of experienced industry professionals

Flexible, fair and fast

Custom funding structure - advance rate, servicing fees, equity split

Fair terms - parallel payback, term length, competitive rates

Fast response - funding as needed, quick turnaround

Our solution is designed to:

Maximize cash flows for our partners

Provide the necessary leverage to optimize ROI and IRR on each investment

Our clients' capital requirements help determine the best solution for the growth and sustainability of their company.

Our FLOCK Funding structure provides portfolio capital for clients spending up to $50 million annually.

 

 

 

  • High Advance Rate
  • Provide Funding for Larger Deals
  • Residual Profit Sharing
  • Higher Up Front Fees
  • Attractive Preferred Return
  • Collection Based Repayment Structure
  • Life of the Portfolio

 

 

 

  • Reduced Advance Rate
  • Provide Funding for Mid-Sized Deals
  • Reduced Residual Profit Sharing
  • Up Front Fees
  • Low Preferred Return
  • Collection Based Repayment Structure
  • Standard Term

 

 

 

  • Lower Advance Rates
  • Provide Funding for Smaller Deals
  • Limited Profit Sharing
  • Higher Up Front Fees
  • Higher Preferred Return
  • Collection Based Repayment Structure
  • Short Term

We develop terms to maximize investment return, cash flow or create a hybrid solution to provide balance.

A Joint Venture Funding Structure

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We use 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. Our legal documents create a structured agreement between FLOCK and our partners that:

  • Aligns our interests
  • Creates an opportunity for favorable tax treatment
  • Creates collateralization for future purchases

The Advantages of FLOCK Funding Versus Traditional Financing Structures

Example: Funding Options for a $1M Portfolio Purchase

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Traditional Capital

  • Corporate and personal guarantees typically required
  • Low senior advance rates requiring larger equity investment
  • Fixed amortization results in rigid repayment terms that may not be aligned with liquidation curve
  • Blanket lien may be required that encumbers all corporate assets
  • Funds may be controlled by lender
  • Mezzanine layer of capital adds additional complexity to the transaction*
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FLOCK Advantage

  • No corporate or personal guarantees required
  • Seasoned team of industry professionals with a proven track record of success
  • Higher advance rate requiring smaller equity investment
  • Simple structure (no mezzanine layer*)
  • Flock joint venture terms are aligned with the purchased asset’s performance
  • No fixed monthly payment
  • Debt buyer receives servicing fees first
  • Potential capital gains treatment
  • A financing partner that does not take title
  • SPV structure unencumbered by balance sheet and is bankruptcy remote

Maximizing Our Customers’ Profits:

Frees Up
Capital
Frees Up Capital
Uses the Power of Leverage
Uses the Power of Leverage
Potential Capital Gains Treatment
Potential Treatment Gains Capital
Increases Equity Returns
Increases Equity Returns
 

The Power of Leverage

Terms and investment expectations are collaboratively determined between FLOCK and our client.

The cash flow, net of servicing fees is returned pari-passu to FLOCK and our client until principal and preferred return are achieved – after which the payment priority switches to a profit share, greatly increasing our client’s ROI and IRR.

    1. Client Return % of Original Capital Contribution
    2. FLOCK Return % of Original Capital Contribution
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Contact us to schedule a call today!