Structured Finance
Where the asset is the credit. Structuring and analytical support for financings built on receivables, leases, loan books and contracted revenue streams.
The proposition
Many businesses hold assets that are financeable on far better terms than the business itself: trade receivables, equipment leases, consumer or SME loan books, royalty streams, contracted subscription revenue. Structured finance separates those cash flows from the operating company's credit, and prices them on their own merit.
The work is analytical before it is legal. Whether a structure is viable depends on data quality, historical loss performance and how the cash flows behave under stress — all of which can be established before the first legal fee is incurred.
What we do
- Asset and data assessment. Historical performance analysis of the pool — delinquency, default, recovery, prepayment and concentration — and an honest view on whether the data supports a transaction.
- Structure design. SPV architecture, true-sale and ring-fencing considerations, revolving versus amortising structures, and eligibility criteria and portfolio covenants.
- Cash flow and waterfall modelling. Full pre- and post-enforcement priority of payments, tranche sizing, excess spread, reserve accounts and trigger mechanics, modelled to a lender-review standard.
- Credit enhancement. Subordination, overcollateralisation, cash reserves and spread capture — sized against stressed loss assumptions rather than base case.
- Stress and rating-style analysis. Loss multiples, timing curves and combined stresses consistent with rating agency methodology, so the structure is tested before it is shown.
- Alternative structures. Receivables purchase and factoring, supply chain and payables finance, asset-based lending, forward-flow arrangements, and private placement structures.
- Investor and lender materials. Structure diagrams, cash flow presentations, data tapes and the analytical pack the counterparty's credit team will ask for.
What you receive
- A pool performance and eligibility analysis
- A structure paper with alternatives and trade-offs
- A full waterfall and tranching model with stress suite
- Counterparty-ready structure and analytics documentation
We work alongside your legal, tax and accounting advisers. K&B does not provide legal, tax or accounting opinions, and does not arrange, underwrite or place securities.
Wondering if your book is financeable?
A short feasibility review will tell you what the data supports before you commit to a process.