At least 15% of the pool, in your own money, deposited first
This is not negotiable. It is what makes the notes sellable to anyone else.
The contracts check it before the pool can open. See
first loss. Pool one requires 25%.
Dollar-denominated receivables
At least for now. If your invoices are in local currency and our investors hold
USDC, somebody carries the currency risk, and hedging it costs 4–5% a year, which
breaks the economics for everyone.
Local-currency pools depend on Circle’s StableFX, which is on the roadmap and not
yet in use. See Circle products. A loan book earning at least 15% gross
Below that there is not enough spread to pay investors, cover losses and leave you
a profit. The arithmetic behind that floor is in
why the asset has to earn 15% or more.
Your existing senior lender’s consent
Most credit facilities forbid pledging the same receivables elsewhere. We work
inside their structure, not around it.
Weekly collection data
A loan tape — every loan, its dates, amounts and payment history.
This is what the collection tripwire measures
against. Weekly, not monthly, because a monthly tape means up to four weeks of
deterioration before anyone notices.
Collections into a controlled account
An account you can see but cannot empty. For stablecoin repayments this is
enforced by the contracts; for fiat it is a controlled account with an independent
trustee. See controlled collections.
A pool cannot open until all six are in place. The first and the fourth are the
ones that most often stop a deal: an originator unwilling to fund 15%, or a
senior lender unwilling to consent.
