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Stochastic Capital
About Us
Stochastic Capital empowers technology and finance companies to navigate the complexities of financing for their growing portfolio of cash-flowing assets with efficient debt capital.
We focus on $25MM to $100MM+ debt facilities for a wide array of assets, including:
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Consumer and small business loans
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eCommerce receivables
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Supply chain finance receivables
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Credit card receivables
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Global Stripe revenues
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Inventory finance
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Point-of-sale receivables
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Buy-now-pay-later (BNPL) receivables
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Salary advance receivables
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Short-term rental income
Our financing solutions are tailored to recognize the unique attributes and risks of each asset type. We look for technology-forward and data-driven companies that leverage proprietary data sets, AI/ML decisioning models, robust performance metrics to create institutional-quality debt facilities.
The Stochastic Capital Process
Understanding Company's Strategic Goals
We begin by listening to founders and developing a thorough understanding of the company's business, goals and objectives.
We focus on historical asset performance, balance sheet, management team expertise, ability to scale asset growth, technology stack and market and regulatory risk.
This review helps us propose a tailored financial strategy to drive growth.
Facility Structure
We understand that one size does not fit all. We tailor our financing solutions to align with your company’s strategic goals and based on our quantitative analysis of your asset type.
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Our facilities can evolve with your company, offering structures such as an initial smaller, shorter-term, corporate bridge facility that can transition into a fully non-recourse structured debt facility that can scale to $100MM or more.
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Our non-recourse debt facilities use newly-created special purpose entities (SPEs) to receive cash flows from underlying assets, isolating them from the company's corporate credit risk. This allows debt levels to be based on statistical asset performance, unit economics and risk, rather than the company’s balance sheet. This is particularly beneficial for early-stage companies (i.e., Seed or Series A, B stage) to secure debt.
These facilities help your company scale efficiently with the assets and without excessive dependence on additional VC or equity capital, which is crucial in challenging equity market environments.
Asset Performance & Risk Analysis
Our comprehensive analysis of historical loan data and statistical metrics provides insights into the following key areas:
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Internal Rate of Return (IRR)
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Asset Payback Period
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Delinquency and Default Rates
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Provisions and Bad Debts
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Cash Collection Curves
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Model Performance
Using stochastic and advanced statistical modeling, we identify seasonal and historical volatility in asset-level delinquencies, losses, and economic returns across diverse economic scenarios.
This rigorous approach ensures we receive precise, data-driven insights to make informed decisions when structuring the facility.
