Monetization Financing:
Monetization Financing vs Traditional Funding
| Monetization Financing | Bank | Venture Capital | |
|---|---|---|---|
| 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 |
| Monetized Amount (Loan to Value) | Up to 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 & Equity |
| Time to Close | 2-4 weeks average | 90+ days | 6 - 18 months |
| 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 year 10x Investment Return expectation |
| Covenants & Reporting to Credit Agencies | None | Restrictive/Rigid | Extensive and Complicated |
| 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 |
| Relationship Dynamic | Team/Collegial | Supportive Relationship Manager,adversarial senior management | Adversarial |
Where Monetization Financing Works Best:
- Service and Supply Agreements
- License Agreements
- Acquisitions
- Energy Savings Contracts
- Waste-to-Energy Facilities
- Renewable Energy and other Green Initiatives
- Equipment
- Real Estate and Project Funding for Cities and Counties
- Deferred Compensation
- Real Estate and Infrastructure
- Funding for Government Programs and Projects
- Monetization Financing vs Traditional Funding
- Monetization Financing Benefits
- Monetization Financing FAQ's
Simply stated we offer the best financing package available to non-investment grade entities - low interest rates, no equity or board seats, no covenants, no oversight and done in a quick and efficient manner.
Industries Where Monetization Financing is Working:
- Waste Management
- Water Purification
- Green Energy (Power Purchase Agreements)
- Recycling
- Medical
- Waste-to-Energy Facilities
- Retail
- Wind Turbines and Solar
- Communications
- Oil and Gas
- Entertainment
- Wastewater Treatment Plants
- Banking
- Food Processing
- Legal
- Education
- Municipal
- Nearly all industries can be approved!
Monetization Financing - Return to Homepage
Monetization Financing
Call - Rob Renk
Ph: 303-521-7622
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