Traditional financing sources find some transactions very difficult to finance. Companies with limited operating histories, negative cash flow, limited collateral, or balance sheet challenges, are some that face this obstacle. VenSource Capital specializes in transactions that overcome many of these challenges. Vensource's equipment leases and loans allow customers to acquire critical operating equipment without exhausting their expensive development capital. Equipment financed usually includes essentials such as computers, laboratory and test equipment, furniture, manufacturing and production equipment, and other office automation equipment.
VenSource serves both early and later stage, venture capital sponsored companies. Most of our customers are actively developing or providing information services, software, or technology products, including products and services in energy, healthcare/medical, biotechnology, security, Internet or other markets. Relationships are built around flexible transactions consisting of equipment leases or loans under credit lines ranging from $750,000 to $5,000,000. VenSource occasionally arranges equipment financing in excess of $3,000,000 on a syndication basis. Terms range from 24 to 48 months, depending on equipment type and credit profile. To limit shareholder dilution, pricing options are typically offered without warrants. For a summary of our typical transaction parameters
VenSource's services feature:
- Equipment financing lines available for up to 1 year
- 24 - 48 month transaction terms
- Monthly payments
- Sale-leaseback of existing equipment
- Non-warrant transactions
- Ability to incorporate some soft costs
- Limited up-front fees and charges
VenSource’s underwriting is based on:
- Strength and quality of venture capital sponsorship
- Experience and caliber of management team
- Quality of equipment to be financed
- Size of customer's market
- Customer liquidity
- Product/service value proposition and prospects
Our Services
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