Capital providersfor private lenders.
A capital provider for private lenders is a company or investor that funds, buys or finances the loans a private or hard money lender originates, so the lender can close more loans than its own capital allows. The main types are white-label table funding, loan purchase (correspondent) programs, warehouse lines, whole loan buyers and direct capital placement.
Key takeaways
- Capital providers differ on three things that matter most: who funds at closing, who owns the loan afterwards, and what you keep (points, interest, servicing, the borrower).
- White-label table funding and direct capital placement fund the loan at closing, so none of your cash goes into it. Correspondent programs and most loan buyers purchase after you close.
- A warehouse line lets you keep the loan and all the interest above the line’s cost, but you fund the haircut and take on the line’s covenants.
- Large table funding and loan purchase programs offer set guidelines and pricing, and some fund through rated securitizations; you work within their program.
- With Lender Capital, one capital partner whose criteria the loan fits funds the whole loan at closing. You keep your points (less the placement fee), earn the spread above the partner’s rate and keep servicing and the borrower. You can also sell a whole loan you already funded to a capital partner.
6 kinds of capital for private lenders.
What each one is, what you keep and what you give up.
White-label table funding
A provider funds your borrower’s loan at the closing table under its own lending program, while the loan closes in your company’s name.
- How it works:
- You submit the deal to the provider’s program, it underwrites and prices the loan to its guidelines, wires the funds at closing, and the loan is assigned to the provider at closing. The provider then owns the loan.
- You keep:
- Your brand on the closing documents and your origination fees. Some programs also pay a premium; terms vary by program.
- You give up:
- The interest income after closing, and control of guidelines and pricing, which are the provider’s. Who services the loan and who the borrower deals with afterwards depends on the program.
- Best for:
- Lenders and brokers who want to close in their own name on a provider’s products and pricing without putting capital in the loan.
Loan purchase and correspondent programs
An aggregator approves you as a correspondent and buys loans you have already closed, if they meet its guidelines.
- How it works:
- You close and fund the loan yourself, with your own capital or a credit line, to the buyer’s guidelines. The buyer reviews the closed file and purchases the loan at its published pricing. Some aggregators fund their purchases through securitizations.
- You keep:
- Points, interest until the loan is sold, and any premium paid on sale. Whether you keep servicing varies by program.
- You give up:
- The loan and its future interest after the sale, and your capital while the loan waits to be purchased. You underwrite to the buyer’s guidelines, and sale agreements usually include repurchase obligations.
- Best for:
- Established lenders with capital or a warehouse line who want a reliable, repeatable takeout at scale.
Co-participation and co-lending
Two or more parties share one loan: each funds and owns a share (a participation), usually with one lead lender holding the note and servicing.
- How it works:
- You fund part of the loan and a capital partner funds the rest, under a participation or co-lending agreement that sets each party’s share of principal, interest, losses and decisions.
- You keep:
- Your share of the interest, your points and, as lead, the servicing and borrower relationship.
- You give up:
- Part of the interest to the participant, and some control: participation agreements usually give participants a say on major decisions. You still put your own capital in your share.
- Best for:
- Lenders who want to keep a piece of each loan (skin in the game) while stretching their capital across more deals. Lender Capital handles whole loans only, never participations: one capital partner buys the entire loan, settled through an escrow agent, and Lender Capital never lends or buys with its own money.
Warehouse lines (credit)
A revolving credit facility from a bank or non-bank that advances part of each loan you originate, secured by the loans.
- How it works:
- You close the loan and draw on the line for the advance rate (a hypothetical 75%, say), funding the rest, the haircut, yourself. You repay the draw when the loan pays off or is sold. Lines come with covenants, eligibility rules and often personal guarantees.
- You keep:
- The loan, the borrower, servicing, your points and all the interest above the line’s cost.
- You give up:
- Cash for the haircut on every loan, plus interest and fees on the line, covenants and guarantees. You carry the credit risk.
- Best for:
- Established lenders with the balance sheet to qualify who want to hold loans and keep all the interest.
Whole loan buyers and forward flow (credit funds, family offices)
Investors such as credit funds, family offices and other institutions that buy whole loans, one at a time or under a forward flow agreement to buy loans meeting set criteria over a period.
- How it works:
- You close and fund the loan, then sell it on agreed terms. Under forward flow, the buyer commits in advance to buy eligible loans up to an amount, at agreed pricing, which gives you a predictable takeout. You can also sell a whole loan you already funded through Lender Capital, where a capital partner buys it (see the next entry).
- You keep:
- Points, interest until the sale and any premium. Servicing may be retained or released, as negotiated.
- You give up:
- The loan’s future interest after the sale (the buyer usually takes it) and your capital until the sale closes. Expect representations, warranties and repurchase terms.
- Best for:
- Lenders with capital to fund first who want to recycle it, and who can meet a buyer’s eligibility criteria consistently.
Direct capital placement (Lender Capital)
A capital platform for private lenders with two paths: it matches each new first-lien, business-purpose loan to one capital partner, which funds the whole loan at closing, or it takes a whole loan you already funded to capital partners that buy it. Lender Capital is not a lender or fund and never lends or buys loans with its own money; capital partners fund or buy the loans.
- How it works:
- You apply once and are reviewed (track record, underwriting, licensing). You submit a loan before closing; it goes only to capital partners whose criteria it fits, and they see the full file before committing. One capital partner table funds the whole loan at closing and the loan is assigned to it. To sell a loan you already funded, you submit it as a whole loan with its balance, payment history, your asking price and whether servicing is released or retained; capital partners whose criteria it fits review the full file, and the sale settles through an escrow agent.
- You keep:
- Your origination points (less the placement fee), a yield spread between the note rate you set and the capital partner’s agreed rate, servicing and the borrower relationship.
- You give up:
- A placement fee paid at closing from your points, only when a loan funds. The capital partner earns most of the interest, so your spread depends on pricing with enough margin above its rate. On a loan sale, a sale fee of 0.75% of the purchased balance (0.50% for preferred lenders), $2,500 minimum, only if the sale closes, and the loan’s future interest goes to the buyer.
- Best for:
- Lenders who want to keep their points, spread, servicing and borrower without carrying the loan, borrowing on a line or raising money investor by investor, and lenders who want to sell loans they already funded to recycle capital.
Table funding vs. loan purchase vs. direct capital placement.
| Feature | Built for lenders who keep their borrowersLender CapitalDirect capital placement | White-label table funding | Loan purchase / correspondent | Warehouse line | Whole loan sale / forward flow |
|---|---|---|---|---|---|
| Who funds at closing | One capital partner funds 100% of the loan; or sell a loan you already funded to a capital partner | The provider, under its program | You, with your own capital or a line; the buyer purchases later | You, with the line’s advance plus your haircut | Usually you; the buyer purchases after closing |
| Who owns the loan after closing | The capital partner (assigned at closing) | The provider (assigned at closing) | You until it is purchased, then the buyer | You (pledged to the line) | You until the sale, then the buyer |
| What the lender earns on each loan | Points (less the placement fee) plus a yield spread above the partner’s rate | Origination fees; some programs pay a premium | Points, interest until sale and any premium | Points and all interest above the line’s cost | Points, interest until sale and any premium |
| Servicing and borrower relationship | You keep servicing and the borrower; on a loan sale, servicing is released or retained | Varies by program | Varies by program; ask whether servicing is released | You keep both | Negotiated: retained or released |
| Your capital in the loan | None | None | All of it until the loan is purchased | The haircut, while the loan is on the line | All of it until the sale |
| Whose guidelines | Your terms; the loan must fit a capital partner’s criteria | The provider’s program, with set pricing you can quote from | The buyer’s guidelines and published pricing | Yours, within the line’s eligibility rules | The buyer’s criteria, often agreed in advance |
| What it takes to start | Apply once; review of track record, underwriting and licensing | Sign up and onboard to the program | Approval; some programs set volume and net-worth minimums | Approval on financials, net worth, covenants, often guarantees | A buyer relationship; a flow agreement for repeat sales |
| Best for | Keeping points, spread, servicing and the borrower without carrying the loan, or selling a loan you already funded | Closing in your name on a provider’s products and pricing | Established lenders who want repeatable takeout at scale | Established lenders who want to hold loans | Lenders who fund first and want to recycle capital |
Swipe the table sideways to compare every option.
With Lender Capital, the originating lender buys back a placed loan if any of its first three payments is more than 30 days late, or if a breach of its representations isn’t cured within 30 days. Buyback and servicing obligations belong to the originating lender under the loan purchase agreement it signs. Lender Capital does not guarantee, insure or repurchase any loan.
What is a capital provider for private lenders?
A capital provider for private lenders is any source of money that lets a private or hard money lender close loans beyond its own balance sheet. It may fund loans at closing (table funding), buy them after closing (loan purchase, correspondent and whole loan buyers), lend against them (warehouse lines) or take a share of each loan (participations).
The differences matter more than the label. Before you compare rates, pin down who funds at closing, who owns the loan afterwards, whose guidelines you must follow and what you keep on each loan: points, interest, servicing and the borrower relationship. The comparison table on this page lines these up side by side.
How do I find loan capital as a private lender?
To find loan capital, decide first whether you want to hold loans, sell them or have them funded at closing, then approach the providers that fit that choice. Lenders that want to hold loans look at warehouse lines; lenders that want to sell look at loan buyers; lenders that want neither look at table funding or placement.
Practical routes, roughly in order of how much of your own balance sheet each needs:
- Table funding or direct capital placement. A capital source funds the whole loan at closing, so none of your cash goes in. See table funding for private lenders and what is table funding?.
- Correspondent and loan purchase programs. You close with your own money or a line, then sell to an aggregator that buys to its guidelines. See correspondent lending for private lenders.
- Whole loan buyers and forward flow. Credit funds, family offices and other investors buy individual loans or commit to buy a flow of them. Through Lender Capital, you can sell a whole loan you already funded to a capital partner. See selling your loans.
- Warehouse lines. A bank or non-bank advances part of each loan against your equity. See the warehouse line alternative for when a line fits and when it doesn’t.
- Participations and private investors. Partners or investors take a share of each loan, or invest in your fund or notes. See how private lenders fund more loans. Lender Capital handles whole loans only, never participations: one capital partner buys the entire loan, settled through an escrow agent, and Lender Capital never lends or buys loans with its own money. To sell a whole loan you already funded, see sell your loans.
Most growing lenders use more than one route. A common pattern is to hold some loans and sell or place the rest.
Table funding vs loan purchase: what’s the difference?
The difference is timing and whose money closes the loan. With table funding, the capital provider funds the loan at closing and the loan is assigned to it at closing, so none of your money is in it. With a loan purchase or correspondent program, you fund and close the loan first, then sell it to the buyer afterwards.
Federal rules define table funding as “a settlement at which a loan is funded by a contemporaneous advance of loan funds and an assignment of the loan to the person advancing the funds” (12 CFR 1024.2). That definition comes from consumer mortgage rules, but it describes the mechanics well. In practice:
- Table funding needs the provider’s commitment before closing, and you carry no loan and no sale risk afterwards.
- Loan purchase lets you close on your own timeline, but your capital (or your line) is tied up until the buyer purchases, and a loan that falls outside the buyer’s guidelines stays with you.
- Direct capital placement is table funding with a capital partner matched to each loan rather than one provider’s program: you set the note rate and keep the spread above the partner’s agreed rate.
How do capital providers price loans?
Capital providers price each loan from a target yield adjusted for risk: loan type, leverage (LTV and LTC), the borrower’s experience and credit, the property and market, term and their cost of capital. Programmatic buyers publish rate sheets; others price loan by loan.
For a lender, the price shows up as the rate or premium the provider pays, or, with direct capital placement, as the capital partner’s agreed rate below your note rate. The gap between what you charge the borrower and what the provider requires is your margin. For the detail on bridge and DSCR loans, read how loan buyers price bridge and DSCR loans, and run your own numbers in the lender spread calculator.
What do capital providers look for in a lender?
Capital providers look for a lender whose loans they can trust without re-underwriting every one from scratch: a track record of originated and repaid loans, consistent underwriting, clean loan files, the licenses your states require, sound servicing and reporting, and, for credit lines, balance sheet strength.
Expect questions about your loss history, how you value property and verify borrowers, how you manage draws on construction loans and how you handle defaults. The lender due diligence checklist lists what to have ready. Warehouse lenders add financial covenants and often personal guarantees; Federal Reserve researchers describe haircuts, margin calls, covenants and guarantees as standard features of warehouse lines (Federal Reserve Board).
Questions to ask any capital provider
Use this checklist before you sign with any capital provider, whether a table funder, a loan buyer, a warehouse lender or a placement platform:
- Who funds at closing, and when is the commitment firm: before closing or after a post-closing review?
- Who owns the loan after closing, and who is named on the note and the assignment?
- Whose guidelines and pricing apply, and what happens to a loan that doesn’t fit them?
- What do I earn on each loan: points, premium, interest until sale, or an ongoing spread?
- Who services the loan and who does the borrower call after closing?
- What representations, warranties and repurchase obligations do I take on, and for how long?
- What fees do I pay, when, and are they owed if a loan doesn’t fund?
- What does approval require: minimum volume, net worth, capital, guarantees, setup costs?
- How is the capital sourced, and what happens to my pipeline if the provider’s capital tightens?
- Can I keep using other capital sources alongside this one?
Get the answers in writing, and have counsel review the agreement before you sign. Nothing on this page is legal, tax or securities advice.
Who are the largest capital providers for private lenders?
Firms report their own figures, so compare them on what each discloses. Two firms that publish large lifetime figures are Roc Capital (part of Roc360), which runs a white-label table funding program, and Toorak Capital Partners, which buys closed loans from correspondent lenders. Banks with warehouse programs, credit funds and family offices are the other main sources.
Roc Capital (Roc360)
Roc Capital describes itself as a capital provider for private lenders. Under its white-label table funding program, it says it funds the borrower’s loan at the closing table in the lender’s entity and brand name, and the loan is assigned to Roc Capital at closing. Its history page says it entered private lending in 2014 by providing institutional capital through a Third Party Originator program, and its back-office page lists underwriting, closing, funding and loan servicing among its services.
Roc Capital is part of Roc360, which said in May 2026 that it had directly funded over $20 billion across 50,000 loans since 2014. Roc360 also securitizes loans: it announced a $200 million residential bridge loan securitization in March 2025, rated by Morningstar DBRS, whose ratings release names Roc360 affiliates as the originator and the servicer.
Toorak Capital Partners
Toorak says it is not a lender itself and partners with loan originators to fund their loans: “We fund the loan. The lender keeps the customer” (Toorak). Its U.S. program is a correspondent program. Its lender FAQ says lenders must be able to close loans with their own funds, should be doing at least $15 million a month and have a company net worth of at least $5 million, and that approval takes about four to six weeks. Velocity Financial’s investor presentation describes Toorak U.S. as acquiring funded and closed loans from correspondent partners.
Toorak was founded in 2016 with capital backing from KKR. Morningstar DBRS describes Toorak as a mortgage loan aggregator that partners with third-party originators, and its February 2025 ratings release says Toorak Mortgage Trust 2025-RRTL1 was the 11th residential transitional loan securitization Toorak has issued, with Toorak as the named servicer.
Toorak’s ownership is changing. In August 2026, Velocity Financial agreed to acquire Toorak’s operating platform from funds advised by affiliates of KKR, with closing expected in the fourth quarter of 2026; Toorak is to keep operating under its existing brands (Velocity Financial, Pacific Coast Business Times). Program terms can change, so confirm them with Toorak directly.
Other options
Other capital providers include banks and non-banks with warehouse lending programs, credit funds and family offices that buy whole loans or sign forward flow agreements, and investors who take participations in individual loans.
Where Lender Capital fits
Lender Capital is newer and works differently from both models above. It is not a lender or fund and does not set a lending program; it never lends or buys loans with its own money, and capital partners fund or buy the loans. Each loan goes only to capital partners whose criteria it fits, and one capital partner funds the whole loan at closing. You keep your points (less the placement fee), the yield spread above the partner’s rate, servicing and the borrower.
Lenders can also sell loans they already funded through Lender Capital: a capital partner buys the whole loan, for a sale fee of 0.75% of the purchased balance (0.50% for preferred lenders), $2,500 minimum, only if the sale closes.
Frequently asked questions
What is a capital provider for private lenders?
A company or investor that funds, buys or finances loans a private or hard money lender originates. The main types are white-label table funders, loan purchase (correspondent) programs, warehouse lenders, whole loan buyers such as credit funds and family offices, and direct capital placement platforms that match each loan to one capital partner.
How do I find loan capital?
Decide whether you want to hold, sell or have loans funded at closing. To hold loans, approach warehouse lenders; to sell, approach correspondent programs and whole loan buyers; to keep your capital out of loans, look at table funding or direct capital placement. Prepare a track record, sample loan files and your licensing before you ask.
What is the difference between table funding and a correspondent program?
With table funding, the provider funds the loan at closing and the loan is assigned to it at closing, so none of your money goes in. In a correspondent program, you close and fund the loan yourself, then sell it to the aggregator afterwards under its guidelines and pricing.
Who are the largest capital providers for hard money lenders?
Firms report their own figures. Roc360, whose Roc Capital brand runs a white-label table funding program, says it has directly funded over $20 billion since 2014. Toorak Capital Partners buys closed loans through a correspondent program and has issued securitizations rated by Morningstar DBRS. Banks, credit funds and family offices are other sources.
Do I keep servicing when I sell or table fund a loan?
It depends on the program. Some loan buyers take servicing (servicing released) and others let you keep it; check the agreement. With Lender Capital’s direct capital placement, the originating lender keeps servicing the loan and keeps the borrower relationship, while the capital partner owns the loan. When you sell a loan you already funded through Lender Capital, you state whether servicing is released or retained.
How does a lender earn with direct capital placement?
With Lender Capital’s direct capital placement, you keep your origination points, less a placement fee paid at closing only when a loan funds, and earn a yield spread: price the note above the capital partner’s agreed rate and the difference is yours. The capital partner earns most of the interest, so pricing with enough margin matters.
Who provides capital to private and hard money lenders?
Lender Capital places each loan with a capital partner that funds it in full at closing, and also arranges sales of funded performing loans to capital partners. Other sources are warehouse lenders, white-label table funders, correspondent loan buyers, credit funds, family offices and banks; each differs on who funds, who owns the loan and what the lender keeps.
How do I choose among capital providers for hard money lenders?
Lender Capital suggests comparing five things: who funds at closing, who owns the loan afterwards, what you keep (points, spread, servicing, the borrower), your eligibility and volume requirements, and total cost including fees and covenants. Match the structure to whether you want to hold, sell or place loans.
Where Lender Capital fits
Lender Capital places first-lien, business-purpose real estate loans with capital partners. You apply once, then submit each loan with the full file. We send it only to capital partners whose criteria it fits, one partner funds the whole loan at closing and it is assigned to them. You keep your points (less the placement fee), earn the spread above the partner’s rate and service the loan. You pay a placement fee only when a loan funds.
Sources
- Roc Capital, White Label Table Funding (program page)
- Roc Capital, Our History
- Roc Capital, Full Back Office Support
- Roc360, “Roc360 Reaches $20 Billion in Loans” (May 12, 2026)
- Roc360, “Roc360 Closes $200M Residential Bridge Loan Securitization, Rated by DBRS Morningstar” (March 18, 2025)
- Morningstar DBRS, “Morningstar DBRS Finalizes Provisional Credit Ratings on ROC Mortgage Trust 2025-RTL1” (March 4, 2025)
- Toorak Capital Partners, home page
- Toorak Capital Partners, Lender FAQ (US)
- Morningstar DBRS, “Morningstar DBRS Assigns Provisional Credit Ratings to Toorak Mortgage Trust 2025-RRTL1” (February 10, 2025)
- Velocity Financial, Toorak Capital Transaction Overview, investor presentation (August 2026)
- HousingWire, “Velocity to buy Toorak platform, manage $3B BPL portfolio” (August 27, 2026)
- Pacific Coast Business Times, “Velocity acquires Toorak’s operating platform” (August 31, 2026)
- 12 CFR § 1024.2 (Regulation X), definition of “table funding”
- Kim, Laufer, Pence, Stanton and Wallace, “Liquidity Crises in the Mortgage Market,” Federal Reserve Board FEDS 2018-016 (warehouse line mechanics: haircuts, margin calls, covenants, guarantees, 364-day terms)
Lender Capital is a business-to-business platform. This page is general information, not legal, tax or securities advice. Descriptions of other providers come from the public sources listed and may change; confirm current terms with each provider.