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Home & lifestyleCorporate / Guaranteed
Illustrative financing scenario · not a historical client result
Scaled home goods brand
A larger, credit-worthy commerce company wanted the lowest-cost capital available. The corporate tier traded a parent guarantee for duration-priced capital in the mid-teens.
Mid-teens
Effective cost of capital
70%
Of S&M spend funded
1.04–1.17×
Duration-indexed multiple
The challenge
- At scale, the brand could support a guarantee and wanted to minimize cost of capital.
- Pure non-recourse pricing was richer than necessary given the company's balance-sheet strength.
- Finance needed predictable, duration-indexed economics for planning.
Illustrative structure
- Underwrote the same cohort engine but structured the guaranteed tier with a parent guarantee.
- Funded 70% of S&M spend with the company co-funding 30%, sharing reference income to the cap.
- Applied a duration-indexed multiple in the 1.04×–1.17× range for transparent cost.
Modeled outcome
- Accessed mid-teens effective cost of capital in exchange for credit support.
- Maintained a single origination relationship across both risk classes as the brand grew.
- Recycled capital between cohorts under a managed borrowing base.
Composite, illustrative engagement. Brand name anonymized; figures are examples, not audited results or a commitment to fund.