Merchant Advances


  • A leading asset management firm considered an investment in merchant advances at attractive rates through a new originator
  • Originator (and servicer) had only a few years of solid business history
  • The asset management firm needed additional assurances to monitor the investment which could grow to $100 million and mitigate risk

Our Role

BPA worked with the asset management firm and the originator to establish risk mitigation practices. We then customized systems, designed workflow, and created reports to accomplish the agreed upon goals that included:

  • Review of underwriting and supporting documents as well as borrower validation for all contracts prior to funding
  • Monitor originator and investor’s bank accounts to match deposits
  • Bank activity is classified and balanced to servicer reports
  • Transactions are reconciled with expected contractual amounts
  • Valuation of each contract’s present value based on the fund’s guidelines
  • Preparation of individual investor statements
  • Weekly / Monthly status reports


  • Asset management firm became comfortable in the process and results and continues to invest additional risk management
  • Daily bank activity is monitored and reconciled
  • BPA provides 3rd party risk management and valuation

For additional information, please contact:

Desiree Daly
at 954-832-3558