When two business loans are cheaper at different rate types, a comparative advantage swap lets both get the loan they wanted for less. You bring the client, we handle the swap.
Inside a swap
Lenders don't price every business the same way. Your client is offered a better deal on floating, and the other business on fixed. If each borrows its better deal instead of the rate it wants, together they pay less interest.
So each takes the loan it's offered the better deal on: your client borrows floating, and the other business borrows fixed.
Your client's floating loan costs more, so the other business pays it the difference through juku. Your client stays on its fixed rate.
Your client's floating loan costs less, so it pays the other business the difference through juku. Your client stays on its fixed rate, and the other business's rate falls with SOFR.
Each business ends up with the rate it wanted, for less than it was quoted. You earn a commission from juku on the deal.
Example quotes
Fixed
Floating
Your clientwants fixed
7.20%
SOFR + 1.20%
Other businesswants floating
6.80%
SOFR + 1.55%
Each takes the rate it wantsSOFR + 8.75%
Each takes its better dealSOFR + 8.00%
How it works, step by step
1
Your client chooses a loan
A business comes to you ready to borrow and knows what it wants: a fixed or a floating rate. You find it the cheapest fixed and floating quotes on the market.
Your clientWants fixed
Cheapest fixed quote7.40%
Cheapest floating quoteSOFR + 1.50%
Example figures
2
You send us the details
If your client is open to saving, you forward the loan size, term and both quotes. No principal is exchanged and your client commits to nothing at this stage.
Sent to jukuReceived
Loan size$500,000
Term5 years
Fixed quote7.40%
Floating quoteSOFR + 1.50%
3
We find the match
We pair your client with a business whose cheapest rates mirror theirs: one cheaper at fixed, one cheaper at floating. Each borrows the type it's cheaper at, ready to swap.
Matching pool1 match
Wants fixed$750k · 5 yrsSame side
Wants floating$500k · 5 yrsMatch
Wants floating$2m · 10 yrsToo different
Wants fixed$250k · 3 yrsSame side
4
Your client saves. You earn.
They swap payments and each ends up with the loan it wanted, for less. You earn a commission from juku on every swap we complete, on top of your fee for arranging the loan.
Your clientThe fixed rate it wanted, for less
Other businessThe floating rate it wanted, for less
YouA commission on the deal
Works with your tools
We connect to the software you already use
Whatever CRM or loan pipeline you run, we'll plug juku into it, allowing you to offer swaps with minimal extra effort.
CRM
Loan pipeline
Loan origination
Spreadsheets
Email
Doc portal
juku
Done by the book
We take compliance seriously, so you and your clients are properly protected. Every deal is held to the highest standards, with no shortcuts.
Documentation1 of 5
ISDA Master Agreement
What it is
The ISDA Master Agreement, published by the International Swaps and Derivatives Association, is the standard contract for over-the-counter derivatives, including interest rate swaps. It sets out how payments are calculated and netted, what counts as a default, and how a swap is closed out if something goes wrong.
How we handle it
Every swap is documented on the ISDA Master Agreement and its Schedule, with a confirmation for each deal. The terms are the market standard rather than drafted from scratch, so both businesses and their advisers are reading a contract the market already knows.
Eligibility2 of 5
Eligible Contract Participant
What it is
Under the Commodity Exchange Act, swaps agreed away from an exchange are only open to Eligible Contract Participants. A business generally qualifies with total assets over $10 million, or with a net worth over $1 million where the swap manages risk in its own business, such as a loan.
How we handle it
Both businesses must qualify as Eligible Contract Participants, and we confirm this for each side before anything is signed. A business that doesn't qualify isn't offered a swap.
Identification3 of 5
Legal Entity Identifier
What it is
A Legal Entity Identifier is a 20-character code, defined by ISO 17442 and overseen by the Global Legal Entity Identifier Foundation, that identifies a company taking part in a financial transaction. US swap reporting rules require each party to a swap to be identified by its LEI.
How we handle it
Each business needs an active LEI before its swap can go ahead, so it is always clear exactly who is on each side. An LEI is renewed every year.
Reporting4 of 5
Swap data repository reporting
What it is
Under CFTC rules, every swap must be reported to a registered swap data repository when it is agreed, and again whenever it changes until it ends. Regulators use this data to oversee the swaps market.
How we handle it
Every swap arranged through juku is reported to a CFTC-registered swap data repository, and its record is kept up to date for the life of the deal.
Screening5 of 5
OFAC sanctions screening
What it is
The Office of Foreign Assets Control, part of the US Treasury, administers US economic sanctions. US persons are generally prohibited from dealing with anyone on its sanctions lists, including the Specially Designated Nationals list.
How we handle it
Both businesses are screened against OFAC's sanctions lists before a deal goes ahead.
Common questions
Each business can borrow more cheaply at a different rate type: one at fixed, one at floating. When each borrows where it's cheaper and they swap, the pair pays less interest in total than if each had borrowed its preferred type directly. That difference is the saving we share out.
No. Deals are structured through a partner bank that sits between the two parties, so neither business is exposed to the other defaulting. Your client simply ends up with the loan they wanted, at a lower rate.
Nothing up front. We're only paid out of the saving we create. If there's no saving to be had, there's no deal and no fee. Your client keeps the majority of whatever we save them.
A new product to offer your clients and a commission on every completed swap, earned on details you already collect when arranging their loan. We handle the matching, structuring and paperwork.
Offer your clients cheaper loans
We're partnering with brokers to bring interest rate swaps to everyday business loans. Register your interest and we'll be in touch as we launch. There's no commitment and no cost.
For US commercial loan brokers
Bring swaps to your clients.
Tell us a little about your brokerage and the loans you arrange. Here's what happens next.
1
We get back to you
Within two business days of you sending this form.
2
A short intro call
How swaps fit the loans you already arrange, and how you earn on each one.
3
Try it on a live deal
Send us a current deal and we'll check whether there's a match for it.
No cost to join
No commitment
Brokers only
Message received
Thanks for getting in touch. We'll review your details and reach out within two business days.