Good businesses deserve better paths to capital.
Temporary underwriting concerns should not constrain good commercial lending.
Our focus
Robust local economies require strong community banks
Community banks understand their customers, markets and communities in ways larger institutions often cannot. Our BankersEdge™ platform gives them another tool to compete for and retain attractive commercial relationships without compromising credit discipline.
- Strengthen the bank
- Preserve the relationship
- Support business growth
C&I lending
C&I lending is more than just a loan
A strong commercial relationship can drive numerous benefits to the bank.
Strong commercial relationship
- Loans
- Deposits
- Income
- Treasury services
- Payments
- Consumer relationships
- Long-term relationship
C&I lending is where we started. It's not where we're stopping.
CollateralEdge is expanding Synthetic Insurance across the community-bank lending portfolio, with commercial real estate next.
The problem
Good deals don't always fit neatly inside traditional underwriting requirements
Short-term credit concerns can derail great lending opportunities.
Collateral deficiency
Concentration risk
Rapid growth
Uneven operating history
Short-term liquidity concerns
Limited guarantee
Why CollateralEdge works
Collateral changes the equation
Additional collateral can strengthen the bank's position, address underwriting concerns and create another path to approval — without changing the underlying borrower or asking the bank to abandon its credit standards.
CollateralEdge created Synthetic Insurance to make reliable collateral available when and where the bank needs it.
| Bank receivesReliable collateral | Yes |
|---|---|
| Bank preservesLoan + deposit relationship | Yes |
| Borrower paysCollateralEdge fee | Yes |
More capability.No transaction cost to the bank.
Case studies
Different concerns → same versatile tool. All loans closed
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Uneven financial history
Securing a Strategic Partnership in Aerospace
Customer concentration and an uneven post-COVID track record, priced in real time against a UMB Bank letter of credit.
Line of credit
$3,500,000
Synthetic Insurance
$550,000
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New relationship for the bank
Facilitating a High-Value Sponsor Acquisition
An $11M acquisition, a sponsor with no prior banking history, and a closing deadline that couldn’t move.
Senior loan financing
$11,000,000
Synthetic Insurance
$2,400,000
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Asset-lite business
Supporting Growth for an Asset-Lite Renewable Energy Company
Minimal tangible collateral and a market window that wouldn’t wait, covered 60% by UMB Bank.
Line of credit
$5,000,000
Synthetic Insurance
$3,000,000
Questions
Have questions? We have answers
- What is Synthetic Insurance?
Synthetic Insurance is a modern collateral solution that gives banks another way to address short-term underwriting concerns. It's a contract that produces real, bank-grade collateral delivered directly to the bank.
- What types of underwriting concerns can be addressed?
Any good C&I deal with a short term underwriting concern is a solid candidate. Limitations around liquidity, performance history, guarantees or collateral are issues we can often address.
- Who determines the amount and term of the synthetic insurance?
The bank determines the amount and term of the coverage (6-12 months) required to effectively address the short term underwriting concern at issue. An optional quarterly extension is quoted with each approved deal.
- Is CollateralEdge a party to the credit agreement?
No. CollateralEdge remains outside the credit agreement and requires no borrower interaction, leaving the bank in complete control of the relationship.
- Who benefits from synthetic insurance?
Both the bank and borrower benefit from our solution. The bank confidently closes a C&I loan and stays within its underwriting guidelines while the borrower secures its required debt financing in a timely manner.
- How does the claims process work?
Claims are designed to be straightforward, with clear requirements and resolution in as little as 30 days.
Give your next good deal a better path to capital
Talk to our team about the deal sitting just outside your policy today.