A solution for optimizing capital and lowering risk. 

  • Funds have become more difficult to secure
  • Banks are reducing access to funds 
  • Institutions seek to optimize capital & lower credit risk
  • Finance companies are looking for options to expand without sacrificing operations

There's an option that has been gaining more attention recently: securitization

Download Securitization White Paper

Securitization BG 2-1

Meet Robert, SVP - Chief Business Development Officer

Since he's been overseeing our developments toward securitization, you should hear about it from our glorious know-it-all, Robert. 


Schedule some time to go over the details of how this all works.

See What Securitization Can Do For You

What is Securitization?

Securitization is the ability to bundle a group of assets (aka loans) into securities that can be sold to investors.  There are several benefits to the financial institution of turning loan assets into marketable securities:

  • Lower Capital Requirements – Some entities due to legal or regulatory requirements need to limit the amount of capital. Securitization moves those assets “off-balance-sheet”.
  • Liquidity – Assets that would have potentially taken years to generate cash flow can now be done as a lump sum in a short period of time. This in turn frees up capital and generates a new financing source instead of using the standard financial institutions to borrower against.
  • Increased Credit Rating – By removing those receivables off the balance sheet, this may help raise the institution’s credit rating, thus allowing it to borrow funds at a lower rate. In essence, the institution is transferring the potential default risk to the investors.
  • Fee Income - By moving the accounts off the balance sheet, interest income is now being replaced as fee income when servicing those loans for the investors.

How Does it Benefit You?

The securities involved in a securitization are split into tranches where the assets share similar qualities with one another (interest rate, loan classification, etc.). Tranches can carry different risks and exposure within a portfolio.

For the investor, there are several benefits for them participating in securitization, here are a couple:

  • Higher Rate of Return – There is a greater chance of having a higher rate of return on revenue generating assets.
  • Portfolio Diversity – Allows investors to diversify their portfolio and gain access to high quality assets that they normally could not invest in.

Want to ask Robert more about securitization?

We know he's got all the answers. Schedule a free demo and find out for yourself. 

See What Securitization Can Do For You