Specialty finance refers to non-traditional financing that occurs outside the standard banking system, typically serving borrowers who do not fit conventional bank lending criteria. It is often used as a synonym for because loans are usually secured by specific collateral rather than general corporate cash flow. Core Mechanisms
: Specialized lenders often move much faster than traditional banks, which are burdened by extensive "red tape". special finance
: Capital provided in exchange for a percentage of future gross revenue. special finance
: Terms are often highly customized to meet the unique needs of a business or specific industry. special finance
: Provides a "lifeline" for startups, small businesses, and non-prime consumers who lack the operating history or credit profile required by banks.