VENTURE LEASE AND LOAN QUESTIONS
Q: How can I finance my company's equipment needs?
A: Your company's equipment needs can be financed
either through a venture lease or a venture loan. A venture
lease is an equipment lease and a venture loan is an equipment loan.
Equipment leases and loans are contracts that allow your company
to use or own equipment and finance them over a period of time through
monthly payments to us. Both forms of financing require equity
kickers (in the form of warrants to acquire stock) in order to compensate
for the credit risk inherent in venture capital-backed companies.
Q: How can I finance my company's growth?
A: Your company's growth can be financed through
a growth capital loan. Growth capital
loans are contracts that allow you to finance any of your company's
general purpose expenditures and growth capital needs over a period
of time through monthly payments to us.
Q: Why should my company finance equipment?
A: Venture leases and loans complement the equity
venture capital raised by your company, thereby extending the time
needed until your next round of financing. Venture leases
and loans allow your company to improve its cash flow by acquiring
or using equipment with a smaller upfront investment and by paying
for them over a period of time. In addition, venture leases
and loans allow your company to pay for the acquisition or use of
equipment with “tomorrow's” money – i.e.
money raised from future equity venture capital rounds.
Q: Why should my company use a growth capital loan?
A: Growth capital loans complement the
equity venture capital raised by your company, thereby extending
the time needed until your next round of financing. Unlike
venture leases or loans, proceeds from growth capital loans may
be used for any corporate related purpose.
Q: What types of equipment can be financed?
A: Any type of equipment can be financed. It all
depends on the price you are willing to pay. Typically, venture
leases and loans are used to finance computers, laptops, test equipment,
computer peripherals, telephone and voice-mail systems, shop equipment,
multi-media systems, office furniture and systems, photocopiers,
and large volume printers.
Q: Do I need to know all the equipment my company wants
to finance up front?
A: No. Our venture leases and loans are structured
as lines of credit allowing you to acquire or use equipment
as you see fit in the future. Our venture leases and loans, however,
are available for a specified period of time and have a maximum
commitment amount.
Q: What are the differences between venture leases and
venture loans?
A: With venture leases, we own the equipment and
we rent it to you. At the end of the term of the venture lease,
you have the option to purchase the equipment from us, return the
equipment to us, or to continue to rent it from us. With venture
loans, you own the equipment at all times, but pledge it to us as
collateral. At the end of the term, you do not have the option
to return the equipment.
Q: How should I determine whether my company needs a venture
lease or a venture loan?
A: When deciding between a venture lease and a
venture loan, you should ask the following questions: 1) How long
do you plan to use the equipment? 2) What do you intend to do with
the equipment at the end of term? 3) How important is it to your
company to have the most current equipment? 4) What is your company's
current tax situation? 5) What is your company's current cash
flow situation? 5) What are your company's specific needs as they
relate to future growth?
