Cambridge Wilkinson (“CW”) is pleased to announce the closing of a forward flow agreement for consumer home improvement loans. The seller of the loans is an originator of consumer installment loans that finance home improvements, including windows and doors, pools and spas, and HVAC projects. The buyer of the assets is a multi-national bank with the expectation to purchase up to $240 million in loans per year from the seller.
The non-bank lending sector is strategically evolving its capital and liquidity management by increasingly using forward flow arrangements with traditional banks and other private credit providers. This sophisticated model, where banks commit to purchasing loans on a pre-agreed, ongoing basis, is becoming more common in today’s specialty finance environment. It enables non-bank lenders to programmatically originate loans without the constraint of long-term balance sheet retention, thereby often optimizing capital efficiency and accelerating growth.
“This trend to forward flow agreements underscores a mature, symbiotic partnership with the banking sector as well as other private credit providers, moving beyond simple warehousing to a more predictable and scalable pipeline that often can de-risk operations and enhance market stability. Our institutional partners see strong value in specialty finance platforms that can originate, underwrite, and scale efficiently. The demand for private credit continues to rise, and we are committed to structuring tailored solutions that support our clients’ long-term growth,” said Rob Bolandian, Co-Founder and Global Head of Investment Banking at Cambridge Wilkinson.
