Monetization Financing vs Traditional Funding
| EquiLease One/SGC | Bank | VC/Investors||
| Funding Applications | No Industry Limitations | Traditional | Start-Up Expansion/Growth/Mezzanine |
| Recourse | No; Funding is non-recourse to borrower | Yes; Funding is recourse to borrower and often personal | Yes: Funding is recourse to borrower |
| Funding Scope | $5 million and up | Limited by department and credit review committees | Highly variable and dependent on fund size |
| Loan to Value | 100% net present value of future 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 | None | Closing & renewable fees | Typically Fees AND Equity |
| Time to close | 2 – 4wks | 90+ Days | 6mos – 18mos |
| Post Funding Reporting | None | Quarterly | Monthly/Daily |
| Repayment Structure | Customized to suit specific cash flow needs of project including option to defer start of repayment for up to 10 years | Restrictive/Rigid | 5-7 yr 10x Investment return expectation |
| Covenants & Reporting to Credit Agencies | None | Restrictive/Rigid | Extensive and complicated |
| Security/Collateral | Assignment of unconditional promise to pay from creditworthy 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 Expensive |
| Relationship Dynamic | Team/Collegial | Supportive relationship manager , adversarial senior management | Adversarial |
Simply stated we offer the best financing package available to investment grade entities – low interest rates, no equity or board seats, no covenants, no oversight and done in a quick and efficient manner.
