For Lending Partners

Senior credit only works when priority, reporting, and trigger rights stay explicit.

This page is for senior lenders. It stays inside credit concerns: collateral, yield, covenant discipline, reporting cadence, and what happens when a venture starts to miss plan.

Credit posture

Minimum practical size

Hadto treats $500,000 of committed senior capital as the minimum practical size for the canonical lending partner, with best-fit deals typically landing above that floor.

Collateral and duration

The target facility is first-priority senior paper over venture assets with a defined amortization or refinance path, usually inside a 24-48 month window.

Return profile

The lender case is fixed-return credit, not equity-style upside. The base structure is designed around 10-12% gross annualized yield economics.

Downside protections

  • First-priority all-assets security package sized to real collateral, not sponsor narrative.
  • A junior-capital buffer beneath the facility so senior debt is not carrying first-loss exposure.
  • Simple covenant discipline tied to debt service coverage, liquidity, leverage, and distribution blockers.
  • Documented trigger rights when reporting slips, the operator changes, or the venture falls materially off plan.

Reporting cadence

  • Monthly financial reporting within 20 calendar days of month-end, including operating cash, coverage, and budget variance.
  • Quarterly management updates covering customer concentration, covenant status, staffing changes, and forward liquidity.
  • Annual external financial package at the level required by the credit agreement.
  • Prompt material-event notice for litigation, tax issues, fraud concerns, payment default, or operator departure.

Out of scope for this credit profile

  • Unsecured growth lending built on speculative software multiples or token-market upside.
  • Structures where community participation or sponsor arrangements can impair senior priority.
  • Credit stories that rely on governance ambiguity, hidden preferences, or a vague workout path under stress.

Lender diligence starts with the downside case

The right conversation is about collateral, coverage, reporting, and workout clarity before anyone talks about portfolio story or sponsor narrative.

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