Senior Credit Facility
Secure, Flexible Capital for Growing Businesses
A Senior Credit Facility represents the highest-priority form of debt in a company’s capital structure. Because it is secured by company assets, it sits at the top of the repayment hierarchy and provides lenders with a first-lien position.
In the event of default or liquidation, senior secured lenders are repaid before all other creditors through the sale or enforcement of collateral assets. This priority status allows businesses to access larger funding amounts with more competitive pricing compared to unsecured or junior debt.
How Senior Credit Facilities Work
Senior credit facilities are typically secured by financial assets, securities, receivables, or other qualifying collateral, rather than only physical assets. Lenders require clear first-lien control, ensuring no other creditor holds a superior claim to the same assets.
In certain restructuring or liquidation scenarios, new lenders may provide funding under super-seniority status, allowing them to take priority even over existing senior facilities—though this is less common.
Some senior facilities also include covenants that require a portion of company profits or cash flow to be allocated toward scheduled loan repayment before funds can be used elsewhere.
Advantages of Senior Credit Facilities
Despite stricter underwriting standards, senior credit facilities offer significant advantages:
Lower interest rates compared to junior or unsecured debt
Higher borrowing capacity
Flexible repayment structures
Ideal for asset-rich companies with limited credit history
Private, customizable negotiation terms
Many large corporations utilize senior facilities that combine multiple credit products, demonstrating how powerful and adaptable these structures can be when properly designed.
Senior Facility Terms & Structure
Because of the secured nature of senior credit facilities, lenders typically require:
Verified first-lien collateral control
Transparent disclosure of all existing debt obligations
Compliance with financial and operational covenants
Senior facilities often combine multiple funding structures under one agreement, such as:
Revolving Credit Facilities
Term Loans
Hybrid Structures
This allows businesses to benefit from both stability and flexibility within a single senior secured framework.
Securing Senior Debt Made Simple
Corporate Trust Fund Makes It Effortless
Businesses often experience seasonal or cyclical cash flow fluctuations. Sudden increases in customer demand may require immediate capital for payroll, inventory, or expansion.
Corporate Trust Fund provides timely Senior Secured Debt Facilities to help businesses capitalize on growth opportunities without interruption.
Our finance team works with private and public companies across hundreds of industries, allowing us to tailor funding structures that align with your operational realities and long-term goals.
Flexible Funding. Smarter Repayment.
We structure senior secured credit facilities with multiple repayment options, enabling businesses to:
Maintain liquidity
Support ongoing operations
Maximize sales and profitability
Avoid missed opportunities due to capital constraints
Our goal is to ensure your financing supports growth—not restricts it.
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