Skip to main content
PSP-first receivable control dramatically lowers default risk. Because we receive all settlements first, we can appropriate circulating collateral immediately by offsetting against incoming receivables.

​
Dynamic exposure management

  • If a merchant’s sales decline, their max advance cap shrinks automatically—keeping exposure aligned to cash generation.
  • Per-merchant cap ≤ 5% of the pool at all times to avoid concentration.

​
How default is triggered

  1. Shortfall detected at settlement → grace window: we withhold future receivables, pause new advances, and contact the merchant.
  2. If unresolved → default declared.
  3. Reserve (10%) and any junior capital absorb first.
  4. Remaining shortfall (if any) is socialized pro‑rata across senior LP NAV.
  5. Recoveries (chargeback reversals, late settlements) replenish the reserve/pool; policies tighten; a post‑mortem is published.
Why this recovers quickly: The receivable stream is short‑duration (T+2) and already custodied by us as the PSP, so recoveries are fast and programmatic, not legalistic.