Seaport Specialty Lending LLC (SSL) has joined Percent Underwriter. SSL is a diversified specialty finance company that provides creative debt financing collateralized by niche, generally uncorrelated, income-producing assets.
SSL makes commercial loans to debt buyer companies, backed by performing or non-performing consumer debt and the reasonably expected cash flow which that debt is expected to generate. Since inception, SSL has focused on funding debt buyers acquiring pools of defaulted credit card accounts, healthcare receivables, auto deficiencies, judgment accounts, short-term installment loans, and fintech. SSL will also provide capital for client recapitalizations to refinance an existing lender or provide liquidity. Since 2010, SSL’s principals have funded over $700mm of loans to debt buyers.
The management team leverages its long-standing relationships in the specialty finance market to identify experienced operators who have domain expertise in their market and are prudent risk managers.
SSL uses a variety of valuation and forecasting tools, including historical performance to model cash flow projections for the assets or asset portfolio.
A structured approach to evaluating risk and measuring performance
In initial conversations, SSL evaluates how long the company has been in business, its market experience, the types of debt it sources, and its business strategy. If the borrower is considered a viable credit , SSL will propose financing structure(s) and proceed with onboarding, diligence and credit approvals if a structure meets the needs of both parties. As part of conducting their own due diligence, SSL will review quantitative and qualitative metrics. This includes assessing the company’s diligence processes to better understand the potential risk and make prudent credit decisions.
Once a transaction has been structured and syndicated, SSL diligently monitors the ongoing health of the borrower, looking at performance, economic changes, and asset values.