Venture Debt Financing Options: Equipment

May be appropriate for a company looking to monetize specific capital equipment purchases. Advances for capital expenditures and fixed assets (lab and manufacturing equipment, office furniture, computers), which can include a percentage of soft costs (software, leasehold and tenant improvements, engineering, and other unconventional assets). This is a relatively cheaper debt tool which provides the most financial flexibility. It is typically done with a specific asset lien structure over a 3- to 5-year term.

Case Study
A venture backed mid-stage communications company needed an equipment loan to finance new equipment acquisitions and to refinance existing debt to allow for more financial flexibility. This case study illustrates the benefits of using a direct lending source as opposed to the possible pitfalls of utilizing a broker for debt financing.

Communications Company Seeking $2MM