Initial discovery takes 1 day and involves a brief questionnaire and a meeting (via phone, zoom, or in person). During that discussion, we determine deal terms that work for both parties. These terms are documented in a term sheet. Once a term sheet is agreed upon, the diligence process for a new CAB relationship usually takes about two weeks, assuming both parties are prompt in providing information when asked. Information on CAB’s business ownership, portfolio performance, history, financials, and licenses will be reviewed/confirmed. Once diligence is concluded, we move to the documentation phase. The documentation review/signing process generally takes a few days to a week, assuming there are no major changes. Once the documentation has been executed, the program is ready to launch as soon as the CAB has made the necessary changes in their loan management system to reflect Vectis Funding as the new third-party lender.

CABs settle with the CAB Lender on a daily or weekly basis, with the loan origination volume dictating the frequency. CABs provide data files which detail loan transaction activity as well as a loan tape showing all CSO Program loan balances at the end of the settlement period. Wire transfer or ACH is used to transmit the appropriate balance between the CAB and the CAB Lender.

It depends! If your lender is looking to sell their portfolio, then as part of the deal documentation we can include a Portfolio Sale Agreement that they will need to execute when the Agreements between Vectis Funding and the CAB are executed.
If your CAB lender is not interested in selling their portfolio, you can still bring on Vectis Funding as a supplemental or replacement third-party lender. In that case, you would continue to service your other lender’s portfolio while working with Vectis Funding on new loan originations.