Credit Enhancements

FreshWorks Credit Enhancement Program

As part of the revised FreshWorks offerings, NCCLF is proposing a credit enhancement product for the use of FreshWorks network lenders. Our intent is to create a credit enhancement that is flexible, straight-forward and user-friendly that will provide collateral support sufficient to induce lending that otherwise would not take place.


There are two possible proposed structures, which will depend in part on the requirements of the credit enhancement capital source. The first is participation financing, which has an additional benefit of an interest rate write down. The second is a more traditional guaranty structure:

  1. FreshWorks Administrator holds a participation in each loan with approved credit enhancement, passing along low-cost interest rate (pricing based on cost of capital source), allowing for an interest rate savings for the borrower. FreshWorks participation acts as first top loss in case of default and loss after recovery activities.
  2. FreshWorks approves a credit enhancement, and funds are held in trust for the lender. Funds only disbursed to lender at time of loss.

All originating lenders would be reviewed and approved by the FreshWorks Administrator (based on review of lender financials, portfolio performance, underwriting guidelines and loan documentation and monitoring procedures). Regular reports to be reviewed by FreshWorks administrator based on originating lender’s reporting requirements. Top loss to be paid / forgiven after originating lender provides documentation of recovery efforts and final loss amount.