KBRA assigns preliminary ratings to three classes of notes (the “Notes”) issued by ByzFunder Asset Securitization I, LLC, Series 2026-1.
ByzFunder NY LLC (“ByzFunder,” or the “Company”) is the Sponsor, Seller, and Servicer for ByzFunder Asset Securitization I, LLC, Series 2026-1. ByzFunder was founded in 2019 and is headquartered in New York, NY, with an additional office in Tampa, FL. The Company is a specialty finance company that provides working capital financing to small and medium-sized businesses nationwide using proprietary risk models, third-party data and technology systems. The Company originates primarily through Independent Sales Organizations (“ISOs”) and offers receivable advances, term loans and lines of credit. As of April 30, 2026, the Company had approximately 139 employees and had funded over $1.4 billion to more than 26,000 small and medium-sized businesses.
ByzFunder 2026-1 is the Company’s inaugural small business ABS securitization. ByzFunder 2026-1 is secured by a revolving pool of business loans and merchant cash advances (“Receivables”). ByzFunder Asset Securitization I, LLC (the “Issuer”) will issue three classes of Series 2026-1 Notes, (collectively, the “Notes” or “Series 2026-1 Notes”) totaling $165.00 million. The transaction features a revolving period (the “Revolving Period”), which will end on the earlier of (i) the close of business on May 31, 2029, 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 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. The transaction includes eligibility criteria and concentration limits for the collateral pool.
The Series 2026-1 Notes are “expandable” term notes such that at any time during the Revolving Period, the Issuer may periodically upsize the current Notes, up to a maximum amount of $500 million, as long as certain conditions are met, including receipt of Rating Agency Condition. The consent of existing noteholders will not be required for these upsizes. As such, upsizes may dilute the control and voting rights of existing noteholders. Additionally, the transaction features a partial Call Option, whereby up to 30% of the Notes may be redeemed for 103% of par until but excluding the June 2027 payment date, and for 101% for the next 12 months until but excluding the June 2028 payment date. The transaction may be called in whole or in part at 100% of par on or after June 2028.
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Methodologies
- ABS: General Global Rating Methodology for Asset Backed Securities
- Structured Finance: Global Structured Finance Counterparty Methodology
Disclosures
Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.
A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.
Information on the meaning of each rating category can be located here.
Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.
About KBRA
Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.
Doc ID: 1015124
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