KBRA Assigns Ratings to RFS Asset Securitization V, LLC, Series 2025-1 Notes
30 May 2025 | New York
KBRA assigns ratings to notes issued by RFS Asset Securitization V, LLC (the “Issuer”). RFS Asset Securitization V, LLC issued five classes of Series 2025-1 Notes totaling $130 million initially.
Rapid Financial Services, LLC (“RFS”), a Delaware limited liability company and Small Business Financial Solutions,LLC, a Delaware limited liability company (“SBFS”, together with RFS, the “Company”) is a specialty financial services company that uses its proprietary risk scoring models, transactional data, and technology systems to provide capital to small and medium-sized businesses. RFS was founded in 2009 and since inception has provided over $4.9 billion in financing to over 64,000 businesses nationwide. As of March 31, 2025, the Company had 180 employees and is headquartered in Bethesda, MD.
The proceeds of the sale of the Series 2025-1 Notes will also be used to purchase receivables, fund the reserve account and pay related fees and expenses. The Series 2025-1 Notes are “expandable” term notes such that at any time during the Revolving Period, the Issuer may periodically upsize the Series 2025-1 Notes, up to a maximum amount of $500million, as long as certain conditions are met, including receipt of Rating Agency Confirmation.
The transaction also features a revolving period (the “Revolving Period”), which will end on the earlier of (i) prior to the close of business on April 30, 2028, approximately 36 months after the initial closing date and (ii) the date on which a Rapid Amortization Event has occurred. During the Revolving Period, the Seller will transfer additional Receivables to the Issuer, who will purchase such additional eligible Receivables so long as (a) the Issuer and the Receivables satisfy all conditions set forth in the transaction documents and (b) a Rapid Amortization Event has not occurred and is not continuing .
Credit enhancement will consist of overcollateralization, subordination (except for the Class E Notes), excess spread, a reserve account (funded at closing) and the excess funding account.
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