Monetization Financing
Monetization Financing refers to the ability of a Vendor or Manufacturer to monetize an equipment related service contract. Converting the equipment lease or rental portion of the service contract into cash.
Scenario:
- Your client provides a service to an investment grade end user.
- Your client needs equipment to provide this service.
- Your client has a 2 to 15 year service contract with the end user.
Solution:
- We can monetize the service contract.
- Provide equipment and working capital.
- More cost effective than offering equity.
Example:
You have an investment grade customer/end user who needs your equipment and wants you to include a service agreement for 2+ years. Leasing companies typically will not wrap all this into a Contract, but we have a way to do it and it is called Monetizing. Simply put, it’s the ability to allow the Vendor or Manufacturer a way to present an all inclusive quote to the customer, wrapping all these items into a comprehensive Contract.
How we do it:
We will put together a comprehensive, proprietary usage or management agreement encompassing both the service and equipment portions of the Contract. Then bill the customer for the total Contract payment, directing payment to a lockbox where it is then bifurcated and the non-tangible, service portion of the Contract is forwarded back to the Vendor/Manufacturer on a monthly basis.
Benefit to the Vendor/Manufacturer:
- Vendor/Manufacturer gets paid for the equipment cost upfront.
- Vendor/Manufacturer avoids monthly billing to customer.
- Customer pays one full Contract payment monthly.
- Terms match the length of the Service Contract.
- Equipment discounting is held to a minimum.
- Equipment and Service wrapped into one lump sum monthly fee.
- Rates - Bank Rates
Requirements & Qualifications:
- Minimum Deal Size $1 Million
- An assignment of an absolute and unconditional promise to pay
from an investment grade obligor.
- A consistant predictable cash flow.
- A date certain payment.
- End User/Obligor must be Investment Grade and/or Bond Rated.
- Service Contract must have an equipment component.
- Service Contracts, SOW's, PPA's or Usage Contracts - workable.
- This program is NOT for ongoing service maintenance contracts.
Call Today @ 877-389-2468
Application - Monetization Financing
Monetization Financing for these Industries & Equipment:
- Automotive Equipment
- Banking
- Biomass Equipment
- Biotechnology
- Broadcast Equipment
- Clean Energy Equipment
- Communications
- Computer Mainframes
- Distribution Equipment
- Energy Industry
- Entertainment Equipment
- Environmental Equipment
- Film Production Equipment
- Food Processing Equipment
- Government
- Healthcare Services
- Hospitals
- HVAC Industry
- Industrial Equipment
- IT Services
- Lab Equipment
- Mail Equipment
- Manufacturing Equipment
- Media Equipment
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Medical Equipment
Mining Equipment
Municipalities
Nuclear Equipment
Oil & Gas Equipment
Petroleum Industry
Plant Equipment
Purification Equipment
Production Equipment
Radio Telecom Equipment
Recycling Equipment
Scientific Equipment
Security Equipment
Semiconductor Equipment
Software
Solar Equipment
Steam Generation Plants
Technology
Telecommunications
Utility Companies
Waste Management Equipment
Water Treatment Equipment
Wind Energy Equipment
Wireless Providers
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Monetization Financing can also be referred as Contract Monetization, Monetizing Service Contracts or Monetizing Service Agreements.
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