Forward flow agreement
A forward flow agreement is a contract in which an investor agrees in advance to buy a lender’s future loans that meet set criteria, at agreed pricing, over a set period.
How a forward flow agreement works
Unlike a one-off portfolio sale, the buyer commits before the loans exist. One law firm defines a forward flow as an arrangement where a funder “commits to purchase from an originator newly originated eligible receivables during a revolving or sale period up to a specified committed amount.” The agreement sets eligibility criteria (loan type, size, leverage, geography, borrower experience), pricing, any allocation targets or minimums, the documents each loan needs, and when the buyer pays: at origination or periodically after the lender has funded the loans.
What lenders should negotiate
- Eligibility rules and how exceptions are handled.
- Minimum volumes, exclusivity and what happens if you miss them.
- Representations and warranties, and repurchase obligations.
- Servicing: who services and on what terms.
- Termination rights for both sides and how pricing resets.
Forward flow vs. table funding
Under a forward flow the buyer often purchases loans shortly after the lender funds them, so the lender still funds each loan first. With table funding, the capital source funds the loan at closing.
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.
Lender Capital is a business-to-business platform. This page is general information, not legal, tax or securities advice. Terms of warehouse lines and other funding sources vary by provider; confirm them with each provider and your counsel.