Business finance, category by category.
Business finance is the broadest of the three intended credit lines. This page sets out the categories it is drawn to cover and the way each one differs, which is a question of what the lender can look to when a borrower does not pay.
The categories in scope
The plan groups four kinds of business-purpose lending under this heading. They are described here as scope, in the register the plan itself uses. None of them is offered, and none of them has terms.
They are separated the way a lender would separate them rather than the way a brochure would. Two businesses of the same size, in the same trade, borrowing the same amount, are different credits if one of them can pledge something and the other cannot.
Commercial loans
A business-purpose term loan or line of credit to an operating company, repaid in instalments and not tied to any one self-liquidating asset. It is the generic form, and the other categories are specialisations of it that add collateral.
Contractor finance
Working capital sized to a project rather than to a balance sheet. The market separates it into paying a supplier for materials, funding the work needed to start on site, and advancing against an approved pay application.
Equipment finance
Financing a specific, identifiable, resaleable machine, where the machine itself is the collateral. It can be written as a loan against the purchase or as a lease, and either way there is a real asset behind it.
Receivables financing
Advancing cash against money a business is already owed. Buying an invoice at a discount and lending against a base of eligible invoices are two different things, and the difference changes who carries the risk on the customer.
What an advance rate is, in general
Across all four categories above, a lender that looks to collateral first is answering the same question: given what this asset or receivable is worth, how much is it reasonable to lend against it? The share of value a lender is willing to advance is generally called an advance rate, and it is usually set lower than the collateral's full value, so the lender is not exposed if that value falls before the loan is repaid.
An equipment loan and a receivables line both use the idea; they use it for different things (a resaleable machine in one case, a base of invoices already owed in the other), and the diligence a lender does before setting the rate differs accordingly.
This section explains the concept in general terms. No advance rate, for any category, for any Build Capital program, is stated on this page or anywhere on this site.
Why the distinction is the whole product
Each category above is the same act - money now, repaid later - separated by what the lender can reach if the money is not repaid. A machine can be recovered and resold. An approved pay application is money a general contractor has already agreed is owed. An unsecured term loan has neither, and is repaid out of trading or not at all.
Build Capital Credit is structured to treat that difference as the design of the product rather than as a detail of the paperwork. What follows from it - how each category would be priced, funded and serviced - is exactly the part that is not settled.
A category appears on this page because the platform is intended to work with that kind of exposure. It does not appear because a programme exists, because terms have been set, or because anyone has been lent anything.
Product terms
Nothing about the terms of these categories is established, and the honest slot below says so rather than filling the space with a plausible number. The firm's own research on funding, servicing and pricing is internal, still under review, and contains figures its own authors have flagged as contested.
Elsewhere in this section
The two narrower lines sit beside this one: Premium Finance and Surety Finance. Build Capital Credit is the parent page for all three, and Build Capital Insurance is the related front on the insurance side.