Wayflyer has entered into a three-year forward flow agreement with funds managed by affiliates of Fortress Investment Group, strengthening its ability to provide working capital to small businesses worldwide. Under the agreement,Fortress intends to acquire up to $1.5 billion worth of loan assets generated through the Wayflyer platform, thereby allowing the company the total potential for raising funds worth $4.5 billion through the next 24 months. Through this financing, Fortress will be able to meet the increased demand in the market for a type of funding that is non-dilutive, fast and flexible as well as helping Wayflyer to grow its lending while keeping its balance sheet untouched by any additional pressures.
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This type of loan origination arrangement, known as the forward flow model, will permit the company to originate loans, Later sell the right to receive any income generated through the loans to institutional investors and Because of this free up the capital, so that it can invest even faster in product developments. “This agreement is a milestone in how we fund and scale our business,” said Aidan Corbett, CEO and co-founder of Wayflyer. “A forward-flow facility of this scale gives us committed, reliable capital to put to work for our small business customers, while letting us manage our own balance sheet far more efficiently. As we scale, the sophistication of our capital structure grows with us, and that ultimately means we can serve more businesses, faster, without compromising on the discipline that underpins our underwriting models.” The partnership also highlights growing institutional interest in asset-backed lending platforms that support small business financing.
