Real‑Time Cash Management for Asset‑Backed Facilities
Fence automates drawdowns, collections, and waterfall execution so capital flows instantly with institutional control.
The cost of slow capital cycling
Infrequent funding cycles create waste on both sides. The SPV holds idle cash paying interest before assets are purchased. The originator warehouses assets on their balance sheet waiting for the next purchase date. Fence enables just-in-time operations: funding, asset purchases, and cash recycling happen continuously — eliminating idle capital on both sides.
Idle cash in the SPV
The SPV is pre-funded but assets haven't been purchased yet. That idle cash accrues interest from day one — the wider the gap between funding and deployment, the higher the effective cost of capital.
Balance sheet warehousing by the originator
Between purchase dates, the originator funds new assets from their own balance sheet. Infrequent cycles force originators to warehouse — adding cost, limiting throughput, and making short-term asset classes uneconomical.
Seven flows that determine facility speed and control
Fence replaces manual reconciliation, approval chains, and spreadsheet workflows with real‑time automation across each cash flow category.
- Instant funding and faster cash recycling
- Automated reconciliation and audit‑ready logs
- Configurable controls for lender preferences
Cash sweeps and disbursements can be automatic, scheduled, or approval‑gated depending on facility requirements. Fence orchestrates movements but never holds the funds.
What happens, and why automation matters
Each cash flow is automated end-to-end with programmable rules, real-time data, and institutional-grade controls.
Drawdowns from tranches
Borrower requests a drawdown based on eligible collateral. Fence validates borrowing base, concentration limits, and covenants, then initiates funding.
- Instant funding once data and terms are configured
- Fewer manual approvals and reconciliations
- Clear audit trail of approvals and disbursements
Asset purchases
Originator submits asset data via API. Fence validates eligibility, calculates purchase amount, and triggers disbursement.
- Improved originator liquidity via faster cash recycling
- Scales to high‑volume, daily funding cycles
- Automated proof of payment and eligibility status
Collections, sweeps & reconciliation
End-customer repayments flow into the master collections account. Fence auto-matches payments to assets, verifies the source, and sweeps funds based on facility rules.
- Real-time view of collected vs expected
- Collections verification — confirm payments originate from the expected end borrower
- Faster cash availability for reinvestment
Cash recycling
Between waterfall dates, available cash from collections can be released for reinvestment. Fence tracks compliance continuously and releases funds when permitted.
- Intraday or daily cash release without full waterfall execution
- Continuous covenant compliance checks before every release
- Enables capital velocity even when waterfall frequency is constrained
Cash waterfall execution
Waterfall rules are encoded into executable logic. Distributions are calculated and executed automatically.
- Complex waterfalls executed without manual error
- Daily or weekly distributions where permitted
- Immutable logs and audit‑ready reporting
Treasury management
Idle, restricted, or blocked cash in the SPV is invested in approved instruments such as money market funds until it can be deployed or distributed.
- Automated investment of idle balances per facility rules
- Reduces drag from uninvested restricted cash
- Full audit trail of treasury transactions
MCA management
The master collections account is the central node for all facility cash flows. Fence orchestrates MCA infrastructure — routing funds between collections, the SPV, and distribution accounts per facility rules.
- Automated fund routing between MCA, SPV, and distribution accounts
- Real-time reconciliation of all inflows and outflows
- Configurable rules per facility — automatic, scheduled, or approval-gated
Measured impact in live facilities
Instant funding
Same‑day funding when data and terms are configured.
Payflow savings
Material reduction in interest cost in the Payflow case study.
90% lower costs
Up to 90% lower operational costs in automated facilities.
Cash recycling
Faster sweeps improve capital velocity.
Automate your facility's cash lifecycle
Talk to our team about configuring real‑time cash management.