Fence

Consider alternatives when:

• You require publicly evidenced enterprise security certifications (SOC 2/ISO) before beginning procurement and Fence cannot provide documentation under NDA.
• Facility operations are small or simple, and the ROI for automation is weak.
• You prefer a single regulated trustee to assume specified roles and liabilities end-to-end (incumbent corporate trust providers may be more appropriate).
• Your institution restricts the use of blockchain-based settlement tooling.
• You lack integration bandwidth and need a more service-heavy, out-of-the-box approach.

Fence's website includes attributed but anonymized quotes, for example:

• "Fence transformed how we manage our warehouse facilities. What used to take days now happens in real-time." (Head of Structured Finance, Global Investment Bank; names available upon request)
• "The visibility and automation Fence provides has materially reduced our cost of debt and operational overhead." (CFO, European Fintech Lender; anonymized)

Critical note: These are vendor-published and anonymized testimonials and are not independently verifiable.

Fence's BBVA × Payflow case study includes reported outcomes such as:

• A notable reduction in interest expenses (vendor-reported)
• Substantial back-office cost savings (vendor-reported)
• Very high monthly transaction volumes validated (vendor-reported)
• Complete transaction validation/verification performed instantly, as claimed by the vendor
• A meaningful increase in advance rates

Critical note: These metrics are published by the vendor; the underlying methodology and baseline assumptions are not disclosed in public materials.

Deal described: a senior tranche in an asset-backed revolving facility.

Reported outcomes (vendor claims):

• Large reduction in indirect capital and back-office costs (vendor claim)
• Notable reduction in interest expenses (vendor claim)
• High monthly transaction validation volumes (vendor claim)
• Instant verification of transactions (vendor claim)
• Meaningful increase in advance rate (vendor claim)

Implementation details (as described by the vendor):

• Digitization of the credit agreement and encoding of rules
• API integrations with stakeholders
• Automated borrowing base calculation
• Automated cash management using smart contracts (as described)
• Real-time covenant monitoring and automated reporting

Critical evaluation: the operational narrative described is plausible for a platform aiming to automate ABF operations. The reported savings and performance metrics are significant; however, without baseline information, independent validation, or methodological detail, the ROI and reported improvements should be treated as vendor-reported outcomes rather than independently verified results.

Fence describes itself as a "tech‑native facility agency" for asset‑backed finance (ABF): a software platform that automates the operational layer of an asset‑backed debt facility — verification, borrowing-base/covenant calculations, reporting, and cash movements — using integrations to data sources and, per its legal disclosures, blockchain/smart‑contract components for settlement and auditability.

In practical terms, Fence aims to replace a mix of:

• Spreadsheet-based borrowing base models and covenant testing
• Manual investor/lender reporting packages
• Back-and-forth between originators, trustees, facility agents, cash managers, and bank operations teams

Fence describes an approach of continuous verification and calculations (as opposed to periodic sampling/audits), and indicates support for accelerated drawdowns and cash recycling (including same‑day funding where permitted).

Fence appears designed for institutional private credit/structured finance participants and asset originators operating revolving warehouse lines and similar structures:

• Capital providers (banks, structured finance teams, private credit funds) that seek stronger operational controls and more frequent monitoring
• Asset originators/fintech lenders with high-frequency receivables (e.g., salary advance, MCA, consumer/SME receivables) that require faster funding and lower operational overhead

Fence's stated positioning emphasizes a combined set of facility agent, cash manager, and reporting automation capabilities rather than functioning as a general loan origination system (LOS) or a full core servicing platform.