Venture Leasing and Lending
 


Venture Leasing and Lending is the term applied to providing secured equipment financing to emerging growth companies backed by venture capitalists or other sophisticated capital providers. This financing method developed in order for these companies to acquire needed operating equipment without exhausting the expensive development capital raised from their equity backers. Equipment financed usually includes essentials such as computers, laboratory and test equipment, furniture, manufacturing and production equipment, and other office automation equipment.

LTI's Venture Leasing and Lending Division targets both early and later stage, venture backed companies located in the U.S. Most of these companies are involved in high technology or information services, software, telecommunications, energy, healthcare/medical, security, Internet or other technology markets. Relationships are built around transactions consisting of equipment leases and secured loans, ranging in size from $250,000 to $1,000,000. LTI arranges lease lines in excess of $1,000,000 on a lease syndication basis. Terms vary from 24 to 36 months depending on equipment type and credit strength. Pricing options are typically offered without warrants to preserve our customer's shareholder equity. LTI's underwriting requirements for venture leases and loans are based on:

  1. Reputation and support of the equity holders
  2. Caliber of management team
  3. Quality of equipment to be financed
  4. Size of customer's market
  5. Liquidity of customer
  6. Product/service prospects


Q: We already own recently purchased equipment.
Can LTI buy it and lease it back to us?

A: Yes. That's a common method used to replenish cash for operating needs.

Q: Our equipment needs are unusual. Can you help us?
A: Yes. We have financed a larger spectrum of companies including technology startups and medical laboratories, but also power cell manufacturing equipment and robotics.

Q: Will we have to give you warrants?
A: No. We can however offer pricing both with and without equity participation.  Some of our customers have found leases with warrants an innovative and cost effective way to reduce cash flow requirements.

Q: What qualifications do you look for in a customer?
A: Management track record and integrity, reputation and support of capital backers, promising market prospects, credible business plan, credit worthiness, and equipment quality.

Q: Will our officers have to personally guarantee
the lease or loan?

A: No, not in most cases. We look to the prospects of the business.

Q: What are the benefits of doing business with LTI?
A: You work with innovative people, experienced in the concerns of emerging growth companies - technology financing specialists who will respond to your unique business needs. We are independent, so we can offer flexible solutions, high approval rates and fast turnaround.

Q: What are the economic benefits of leasing?
A:

  • Source of working capital that conserves cash;

  • supplements other sources of funds;

  • matches financing with useful asset life;

  • passes risk of obsolescence to the leasing company.
  • Q: What are examples of innovative LTI financing?
    A:

  • Short-term vendor rental programs
  • financing of demo pools to assist marketing efforts in placing inventory with customers
  • software financing
  • revolving lease and loan lines of credit
  • Q: Is LTI capable of meeting our growing and changing needs?
    A: Yes. We fund numerous additional financing alternatives, including off-balance sheet, true operating leases, fixed-rate term debt and bridge financing. We also work with funding partners when appropriate to expand beyond our internal credit limits.

    Q: Are there other benefits or services I can expect from my relationship with LTI?
    A: Yes. Our officers bring broad-based financial experience including banking, mezzanine and equity funding, M&A and vendor marketing programs. We frequently assist portfolio customers in arranging other capital.

    If you have a need for equipment financing of $250,000 or more and have received an equity round of at least $2MM....and you would like someone from LTI to contact you regarding a leasing arrangement......click below