LOAN SPONSORS

ThinCats’ success is dependent on establishing a reputation for high quality, low risk deals and we have devised a unique method of vetting applicants and helping them present their cases comprehensively. In order to undertake this vetting we are establishing a network of ex bank managers and corporate finance experts we call “Sponsors”.

The Sponsor works for the Borrower in helping to prepare the loan case. This involves gathering information and identifying security requirements. Detailed security preparation will normally be undertaken together with the ThinCats ‘Risk Committee’ and where non-standard cases are concerned we may need to involve a lawyer (incurring extra cost for the borrower).

Borrowers cannot be featured in a loan auction without the support of a sponsor.

The Sponsor’s loan report, typically about 20 pages long and written in a style similar to that of a bank internal credit committee report is made available to lenders when an auction starts. The Sponsor makes no recommendation other than recognizing that their reputation is ‘on-th-line’. The Sponsor will have negotiated a 'success fee' out of the loan proceeds ranging from about 2% to 6% of the amount raised and Sponsors therefore have a financial incentive to get the deal done. The Sponsor normally receives 0.5% monitoring fee which is added to the interest paid on the diminishing balance of the loan. They therefore have a contribution to their continuing support of the Borrower after the loan is made and they will be expected to provide the Lenders with quarterly monitoring reports.

The Importance of Sponsors

Sponsors provide lenders with pre-vetted deals where their reputation for good quality lending is key to their continued success. Successful Sponsors attract better quality deals and so will be able to command higher fees for their work.

If you are interested in becoming a Sponsor you can download the Specification as a PDF file. and if you are still interested please register your interest by sending an email to: [Peter@thincats.com].

Please provide some information about yourself and why you think you might be suitable for the role.

Opportunities for Introducers

The roll of Sponsor is demanding and specialised and not all corporate finance advisors, accountants, IFAs and other professionals are in a position to undertake that work. However all of our Sponsors recognise the importance of a good deal flow and are happy to share their fee with introducers. If you would like to operate in this way and you have an opportunity to discuss please call one or more of our Sponsors to discuss the opportunity you have in mind. Click here for a list of Sponsors.