Real World Examples
This week, we’re diving into one of the more technical but quietly important areas of commercial finance: Lender Finance.
Lender Finance does not always get the spotlight, but it plays a meaningful role within the broader specialty finance ecosystem. It sits at the intersection of structured credit and real-world lending platforms, supporting finance companies that provide capital solutions across a wide range of industries and borrower types.
Speaking personally, this is a vertical I’ve grown increasingly passionate about. Having spent years in roles involving lending to other lenders, I’ve seen firsthand how nuanced this type of credit can be. It is a space that demands structure, discipline, transparency, and deep understanding — not only of the finance company itself, but also the underlying borrowers and collateral supporting the portfolio.
USA: Commercial SME Finance.
This facility has been in place since December 2018, extended to a factoring and asset-based lender operating across the Southeastern United States.
What stands out about this company is the ownership team. These are experienced lenders who are not managing from a distance. They are embedded in the day-to-day operations of the business, and that hands-on approach shows up in how methodically they have built their company over the years, adding key personnel deliberately and growing their client base with discipline.
The business supports small and medium-sized enterprises through factoring and asset-based lending, two products that Garrington Capital knows well from our own lending. That shared fluency matters. When we underwrite a lender finance client, it helps enormously to understand not just their balance sheet but their business model, their borrowers, and the collateral behind each transaction.
The owners of this business are hands-on operators who have skin in the game. They have built their team carefully, know their clients well, and run a business they are genuinely proud of. That is exactly the kind of operator we enjoy working with. Our job is not just to provide capital but to understand the business well enough to be a real partner through its growth. When we find clients who bring that same level of commitment to what they do, the relationship tends to work well for everyone.
The facility has been in place for several years, which speaks to the stability of the relationship and the consistent performance of the underlying book of business.
Why This Kind of Deal Works.
Lender finance is not a passive exercise. Every transaction requires us to understand the business behind the loan book, the borrowers behind the business, and the operator behind it all.
What makes lender finance work is not just structure. It is knowing your client well enough to see around corners. That takes time, experience, and the right kind of relationship. We have been building both for over 25 years.
It allows us to support experienced finance companies that in turn provide capital to businesses and individuals that the traditional banking system has left behind. That is a space we understand well, and one we are proud to be part of.
If you’d like to learn more about our lending verticals or discuss how Garrington Capital might support a client in your network, we welcome the conversation.