## Executive Summary
Securing institutional warehouse financing is a critical milestone for specialty finance platforms. This guide outlines the key considerations and best practices for emerging lenders approaching their first facility.
Preparation Phase
Before approaching warehouse lenders, platforms should ensure:
- Loan-level data tape with complete field coverage
- Historical performance data (even if limited)
- Clear data dictionary and field definitions
- Automated reporting capabilities
- Documented underwriting policies and procedures
- Servicing capabilities (in-house or third-party)
- Compliance and regulatory framework
- Technology infrastructure
Facility Structure
Key structural elements to understand:
- Asset type and historical performance
- Borrower credit profile
- Collateral characteristics
- Concentration limits
- Eligibility criteria
- Concentration limits
- Advance rate by asset type
- Reserves and holdbacks
Lender Selection
Consider these factors when evaluating warehouse lenders:
- Sector Experience - Familiarity with your asset class
- Flexibility - Willingness to accommodate growth
- Pricing - All-in cost including fees
- Relationship - Long-term partnership potential
Timeline Expectations
A typical first warehouse facility takes 3-6 months from engagement to close, depending on data readiness and lender diligence requirements.
This briefing is for informational purposes only and does not constitute investment advice.