Compare Contract Financing to Traditional Funding

	Contract Financing	Bank	Venture Capital
Funding Applications	No Industry Limitations	Traditional	Start-UP Expansion/Growth/Mezzanine
Recourse	Limited to Equipment	Yes: Funding is recourse to borrower and often personal	Yes: Funding is recourse to borrower
Funding Scope	$1 Million and up	Limited by department and credit review committees	Highly variable and dependent on fund size
Monetized Amount	Up to 100% net present value of fixed payment stream	Typically 10% - 50%	Typically 10% - 70%
Interest Rate	Fixed Competitive	Not Fixed: May be competitive	Not Fixed: Not Competitive
Fees or Equity Grants	Documentation & Legal Only	Closing & renewable fees	Typically Feeds & Equity
Time to Close	2-4 weeks average	90+ days	6 - 18 months
Repayment Structure	Customized to suit specific cash flow needs of project including option to defer start of repayment	Restrictive/Rigid	5-7 year 10x Investment Return expectation
Security/Collateral	Assignment of unconditional promise to pay from investment grade entity	1st Lien position on tangible assets	Control
Oversight	None	Audits, frequent reviews - life of loan	Board Representation
Documentation	Efficient - Prepared in house	Litigious and Extensive	Litigious and Extensive