Venture leasing allows vc-backed, and startup companies an
alternative way to finance the company's equipment
requirements. Startup, and vc-backed companies have
traditionally financed equipment through equity offerings to
enable growth. Professionally managed venture capital funds
have been the major source of this type of funding. Asset based
equipment leasing allows venture capital investors, and
company management to conserve their equity investment,
conserve cash, and protects against unnecessary dilution.
A venture leasing transaction is similar to a standard
equipment lease in that the terms offered range from 24-60
months, the purchase options include $1.00, and fmv residuals.
One-page application only programs are also offered. The
main difference is that warrants, and/or zero cost basis stock
incentives are usually part of a venture leasing transaction. This
provides a risk/reward incentive that a tradition bank or lending
source may not consider.
Copyright 2002-2006 M.J.M. Capital, Inc. All Rights Reserved.
|
Call 866.MJM.CAP2 or 866.656.2272 to find out more.
|
M.J.M. Capital, Inc.
Equipment Leasing