Specialty Finance
Structured Capital for Nontraditional Businesses
Specialty finance is a credit facility designed for companies that need a program shaped around how they collect revenue, whether that means healthcare receivables, legal or contingency cash flow, a portfolio an originator holds, or another asset that does not fit a generic bank or ABL box.
i95 Capital structures and places specialty finance facilities with specialty lenders and private credit.
Flexible Terms to Maximize Your Opportunity
Amount
Up to $100M
Agreement Term
Up to 5 years
Advance Rate
Custom to assets and cash flow
Size and structure follow the asset, not a generic credit score box. Healthcare and legal facilities are usually built around collection speed and concentration. Lender-finance facilities are built around the originator’s portfolio. Advance rates move with eligibility, dilution, and servicing.
Who Uses Specialty Finance
Specialty finance fits companies whose payors, assets, or model sit outside a conventional bank or ABL box.
Litigation and legal finance
Law firms with contingency practices, litigation finance companies, and legal funding platforms hold value that does not show up on a balance sheet the way a bank wants. Capital is structured against case portfolios, contingency fee streams, and claim portfolios.
Healthcare providers and medical staffing
Medical groups, providers, and staffing firms generate receivables but face reimbursement timelines, Medicare and Medicaid cycles, and insurance adjudication that a standard lender will not underwrite as a simple B2B base. Facilities are built around how those receivables actually collect.
Financial companies and originators
Factoring firms and other specialty originators often need a line against the book they already fund. That is lender finance, leveraging a performing portfolio so they can originate more without waiting on their own book to turn over.
Nontraditional collateral
Some operators hold real assets or cash flow that a conventional credit box misunderstands or will not touch. The asset is real, but it does not fit the standard categories a bank or ABL lender is set up to underwrite.
Transitional real estate
A lease-up, a repositioning, or a time-sensitive purchase will not always clear a bank’s stabilized box. This fits when the lender is a specialty shop. Use CRE when the file is a conventional acquisition, refinance, or CMBS.
Available in all 50 US states.
When It Makes Sense
Use specialty finance when a conventional bank line or ABL revolver cannot underwrite the asset, including healthcare collections, a legal or contingency book, an originator’s portfolio, or another nonstandard cash-flow stream.
The facility is built around that asset. Eligibility, advance rate, cash-flow triggers, and servicing follow how the book actually pays, not a generic borrowing-base formula. Healthcare and legal files are collection-and-concentration stories. Originators are usually lender finance against a performing portfolio.
It is the wrong first tool when the company has clean B2B invoices and wants a simple revolver. That is ABL or factoring. It is also the wrong program for a fully stabilized CRE takeout.
Specialty Finance Compared with Other Options
A conventional bank line is simpler when the bank already understands the borrower and the collateral. Specialty is the path when the bank will not underwrite the asset class.
ABL and factoring are the right tools when the base is clean B2B or B2G invoices. Specialty is for payors, portfolios, or collection mechanics those products will not take.
Interim capital is faster and more expensive. Use it when speed is the point and repayment is clear. Do not use it as a substitute for a structured facility against a book.
CRE acquisition, refinance, and CMBS cover stabilized or standard transitional real estate. Use this specialty finance when the lender and the structure are specialty, not a conventional CRE box.
How Lenders Evaluate Specialty Finance Files
Underwriting is driven by the asset and the cash flow, not a generic balance sheet. Lenders look at the asset class, how reliably it collects, and whether the advance rate and structure match that risk. A healthcare receivables facility is not underwritten like a litigation book or a lender-finance line. Lender expertise in the specific vertical matters as much as the pricing.
Collateral quality and eligibility are the primary focus. Lenders assess portfolio concentration, the credit quality of the underlying obligors, the average collection cycle, and historical loss and recovery rates. Assets with predictable collection timelines and low default rates support higher advance rates. Assets with longer cycles, insurance claim review, or uncertain timing are underwritten more conservatively.
The operator’s track record carries real weight. Consistent performance data, servicing history, and a documented collection record beat projections. Lenders are underwriting the operator as much as the asset.
Personal and business credit still matter, though there is no single public cutoff used across every file.
How It Works
The process starts with the asset, what it is, how it collects, and whether healthcare, legal, lender finance, or another specialty structure fits. The borrower gathers the core financials plus a portfolio or receivables summary.
i95 Capital structures the file and places it with a specialty lender in that vertical. The lender underwrites eligibility, advance rate, and servicing, then issues a term sheet. Close and fund follow that approval.
A complete file may take weeks. Speed depends on the quality of the portfolio data, not on a short form alone.
Specialty Finance FAQs
Is specialty finance a bank line with a different name?
No. It is a facility built around an asset or cash-flow stream a conventional bank line or standard ABL revolver will not underwrite cleanly.
How is this different from factoring?
Factoring purchases or advances on specific B2B invoices. Specialty can sit on healthcare collections, a legal book, an originator’s portfolio, or another nonstandard asset.
What is lender finance?
A line to a finance company against the book it already funds, so it can originate more. The borrower is the platform, not the platform’s client.
How long does approval take?
Often several weeks from a complete file. Portfolio quality drives timing.
Do owners have to guarantee?
Often yes, depending on the lender and the structure. Not always to the same degree as an SBA 7(a).
Are payments tax-deductible?
Interest on a loan is typically deductible as a business expense. Confirm treatment with a CPA. A true purchase of receivables is a different analysis.
What to Have Ready
A specialty file starts with the same core financials, plus a clear picture of the book being financed.
- Business tax returns or year-end financials (last 3 years)
- Current interim P&L and balance sheet
- Debt schedule
- Business bank statements (last 3 months)
- Use of proceeds
- Portfolio or receivables tape (eligibility, aging or stage, concentration, obligors)
- Collection / performance history on that book
- Servicing description
- Ownership breakdown
- Personal tax returns and a personal financial statement if the lender asks
Healthcare files add payor mix. Legal files add case-stage or portfolio summary. Lender-finance files add the originator’s own facility stack.
How to Get Started with Specialty Finance?
Apply on your own
- Start the application process by completing the specialty finance online application and submitting your portfolio summary and recent financial statements.
- The application is easy and without commitment.
Or, we can assist
- Complete our contact form and select Application Assistance in the Inquiry Type, and a representative will call you promptly. i95 Capital assists you every step of the way.
Either way, after receiving your completed financing application, we will promptly review the information and the documents you included and submit the file for processing.
Typical files: Litigation finance · Healthcare receivables · Lender finance