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Financing Programs
for Fintech and
Alternative Lenders

Accord’s lender financing solutions can help alternative lending sector stakeholders set themselves apart from traditional financial institutions and focus on what they do best–support their customers cash flow and financing needs.


We have seen significant changes to the alternative lending space within Canada and the United States as new Fintech companies enter the marketplace, creating new niches within the alternative lending field. This provides more options for consumers beyond traditional bank loans, and has increased the competition in the marketplace.

When you choose to work with a Fintech company and assess your cost of capital, it is important to look beyond the interest calculation. There are other aspects of a lender finance relationship to consider. Many of these secondary factors have costs and implications that are as important to you as the interest rates.

Within the Fintech industry, the most successful lenders are those who can best execute the key financial services of controlling customer acquisition costs, managing bad debts and obtaining access to capital at a reasonable cost.

As more Fintech lenders enter the alternative lending market, costs associated with AdWords, Facebook, and other online marketing are escalating along with referral fees paid to lead generators and brokers. You can always increase your spending in these areas to keep deal flow high; however, this is not necessarily a sustainable approach.

Another way for a Fintech lender to increase their portfolio is to make more loans by lowering credit scoring criteria. This may produce short-term gains, but is certain to result in long-term pain. There is probably no metric more important for your business than the measurement of credit risk and the resulting bad debts. It is critical for any lender, but imperative for Fintech lenders with borrowers who have a higher risk profile to measure and track credit risk accurately.

The optimal level of credit risk for your business may vary depending on what type of Fintech lender you are, but will take into consideration several factors, including your average yield, customer acquisition costs, loan duration, available security and recovery costs. These factors will also play a vital role in determining your cost and access to capital.

The key to continued growth for providers of alternative and Fintech loans is a secure, reliable source of funding.

Accord’s experience with lending to alternative and Fintech lenders means we truly understand the lending business, what you need to grow, and the ups and downs you’ll experience along the way. We have helped the following lending companies thrive:

  • Commercial Finance:
    • Merchant Cash Advance
    • Factoring
    • Small Business Loans
  • Consumer Finance:
    • Used Car Financing and Leasing
    • Auto Repair Financing
    • Short-term unsecured personal loan
    • Personal debt consolidation loans
    • Installment payment

We understand that, as a Fintech lender, you use multiple financing options to meet your capital needs. However, we believe that a revolving senior loan facility is a critical component of the Fintech lender financing equation.

Accord can be that reliable source of capital for your alternative or Fintech lending business. We provide lender financing solutions in the form of senior, secured facilities, and have helped alternative lenders like you for decades.

As an alternative lender ourselves, we understand the complexities, difficulties and opportunities you face as a high-risk portfolio lender.

Our lending industry financing solutions provide the flexibility that Fintech and alternative lenders require to respond quickly to the real-time nature of your business.

Our experience has taught us that the most successful lender finance companies are those that find creative ways to attract customers without dramatically increasing their customer acquisition costs; thus maximizing their return on marketing investments.

Here are just a few ideas that you may consider pursuing:

  • Partnering with other Fintech lenders or traditional brick-and-mortar industry participants
  • Targetting private companies in specific niche markets where your marketing costs are lower
  • Build platforms that develop longer-term relationships with your customers by offering a value proposition beyond the term of your loan
  • Close the highest possible percentage of the good leads that you generate

In addition to leveraging your assets for growth capital, Accord can also help you execute these ideas and more for your lending business to thrive.

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Frequently Asked Questions

Financing for the lending industry, also known as lender-to-lender financing, is the process of one lender providing financing to another lender.

As a Fintech or alternative lender, you must focus on many objectives, including:

  • Customer acquisition costs
  • Managing bad debts
  • Attracting customers to grow your portfolio

As a lender, access to capital is vital to your success. Lending industry financing solutions are tailored to leverage your portfolio, providing you with credit lines that support growth in your loan portfolio.

In order to qualify for lender-to-lender financing you need to have sufficient collateral, in the form of a portfolio of performing loans.

Additionally, most lenders that provide financing solutions for the lending industry will want to ensure that you have robust systems and internal controls. This way, your underwriting guidelines will be consistently applied and you and your lender will be able to track the performance of your portfolio closely.

To discuss how we can provide a lender-to-lender loan facility, call us directly at +1-800-967-0015.

Lender-to-lender financing is not intrinsically riskier than any other type of asset-based lending. However, to mitigate any additional risk, you should choose a lender whose lending industry financing solutions will not penalize you with a bevy of financial covenants.

While most big banks will not consider lending to your high-risk business, there are alternative lenders, such as Accord, that are more comfortable providing lending industry financing solutions against higher risk portfolios.

Give us a call to learn how Accord can help your high-risk lending business at +1-800-967-0015.

Yes, Accord’s lending industry financing solutions will give you additional capital that allows you to lower your lender risk by diversifying your loan portfolio with more reliable credits.

Accord provides lending industry financing solutions for alternative, startup, and Fintech lender finance companies serving in a variety of industries.

Commercial finance companies that take advantage of lending industry financing solutions usually work in B2B sectors and include:

  • Merchant cash advancement
  • Factoring
  • Small business loans

Nevertheless, there are a variety of sectors where B2C companies can also take full advantage of lending industry financing solutions, including:

  • Used car financing
  • Leasing and repair financing
  • Short-term personal loans
  • Personal debt consolidation loans
  • Installment payment loans

Lending industry financing solutions enable your Fintech or alternative lending business to leverage its assets in order to obtain working capital. The capital can be used to finance growth, acquisitions, and other alternative lending objectives.

Lender-to-lender loans are not constrained by financial ratios or covenants, so your business can typically borrow more under a lender-to-lender facility from Accord than through a traditional bank.

Accord can provide you with lender-to-lender financing, whether you are in the U.S. or Canada. Call us directly to see how we can help at +1-800-967-0015.

It is best to work with a lender, such as Accord, who has specific experience and a successful track record providing lender-to-lender facilities. When working with an experienced lender like us, you will most likely find a loan facility that is uniquely structured to meet your unique needs.

Call us directly to learn more about lending industry financing solutions tailored to your business at +1-800-967-0015.