Marketplace lender Marketlend is on the hunt for A$25 million in debt funding to support growth in its business finance niche.It is offering an indicative margin of 500 basis points over BBSW.With a flow of early business from borrowers content to pay interest rates in the mid teens and often in excess of 20 per cent, Marketlend may be making a decent margin.It is well and truly in a higher yielding niche compared with the likes of Ratesetter, with the latter pushing out loans at rates well under ten per cent.One of an array of local start ups in the Australian marketplace lending sector, Marketlend is, like many others, relying on wholesale funding and loans from the well heeled to stay in business."Proceeds will be used to fund the purchase of notes issued in order to provide trade receivable, inventory, and other working capital facilities to select borrower applicants meeting strict underwriting criteria," Marketlend wrote in a pitch document circulated last week.The lender will hold the first secured position against receivables or against all of the borrower's company.Leo Tyndall, operating through Tyndall Capital, is the structured finance lawyer and Unicredit investment banker behind Marketlend. The structure of the note offer bears the hallmarks of a long history in securitisation.There will be a matching $25 million insurance policy from QBE Insurance "covering 90 per cent of the face value of trade receivables" and a minimum ten per cent over-collateralisation on trade receivables, with less on supply chain finance.There is also a "subordinated layer of debt providing loss protection."Loans funded to date by Marketlend total $500,000 across only 18 borrowers, the pitch shows. Another $8 million in loans are in progress.The average rate on loans is 19 per cent.Jardine Lloyd Thompson is the back-up servicer.