SOLUTIONS THAT WIN

 

Simplicity. Reliability. Efficiency.

CollateralEdge™ is designed to empower banks with a unique collateral coverage solution that makes it easy for a banker to structurally enhance commercial loans to be more competitive. The result — faster loan approvals, more deals, and happy customers.

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Term loan

We provide collateral support on up to 20% (not to exceed $2.5M) of new, non-syndicated, amortizing term loans.

Term

Renewable for the life of the loan at the same price and collateral amount. Minimum 1-year term. Cancellable quarterly after the first year at the bank’s option.

Common Use Cases

  • New Customer
  • M&A transaction
  • Limited recourse comfort
  • Airball
  • Reduce personal guarantee
  • Excess liquidity

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Line of credit

We provide banks an enhancement option to request collateral on up to 10% of a new line of credit (not to exceed $1M) during the 12-month life cycle.

Term

Initial collateral terminates at line maturity, quarterly extensions available for up to a year thereafter. Collateral may be extended even if the loan is in default.

Common Use Cases

  • Eligibles exceed bank’s credit policy
  • Bank eligible definition adjustment
  • Mid period growth/liquidity needs
  • Short-term excess ineligibles requiring loan amendment

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Pricing coverage is easy

Our proprietary Pricing Portal fits within a banker’s workflow and enables us to effectively price coverage at the point of sale.

1
Gain access to our pricing portal

Send us your information and we will quickly authorize you as a user.

2
Submit the required loan data

Approximately 60 data points
(in underwriting data) and less than 5 minutes to enter.

3
Instant access to the coverage quote

Term sheets can be immediately downloaded from within the portal.

Have questions? We have answers.


No. CollateralEdge has no interaction with the borrower and does not take any Company identifiable information from the bank. Our back end partner, UMB Bank, has no access to any information regarding the borrower or loan.

No, the amount and pricing of our collateral does not change regardless of underlying performance of the loan or credit quality of the borrower.

No. We have designed our solution to give our bank partners confidence in terms of the reliability of our collateral. The counterparty risk is UMB Bank which has investment grade status (Fitch – A / Moodys – A3 / S&P – A – )

There is no impact to the collateral, and the only action requested is to notify CollateralEdge when the default occurs and when the borrower is subsequently out of default – such as with an amendment or waiver.

CollateralEdge is not a lender or lienholder to the end – borrower. The customer bank may not forgive all or a portion of the loan but may in all other respects manage the workout process as it sees fit prior to a requisition notice.