Where do startups turn to get venture leasing' Part of the infrastructure supporting startups is a handful of national leasing companies that specialize in venture leasing.
Like the Connecticut-based lessor introduced to Waitley, these firms have experience and expertise in structuring, pricing and documenting transactions, performing due diligence, and working with startup companies through their ups and downs.
Most venture lessors provide leases to startups under lines of credit so that customers can schedule multiple takedowns during the year. These lease lines typically range from as little as $200,000 to over $ 5,000,000, depending on the start-up's need, projected growth and the level of venture capital support.
The better venture lease providers also assist customers, directly or indirectly, in identifying other resources to support their growth. They help customers acquire equipment at better prices, arrange takeouts of existing equipment, find additional working capital funding, locate temporary CFO's, and provide introductions to potential strategic partners--- these are all value-added services the best venture lessors bring to the table.
While Craig Berman's story is only an illustration based on an actual financing, many venture capital-backed startups are discovering that venture leasing can leverage venture capital to boost shareholder value.
These startups are then able to use their venture capital for growth activities that build enterprise value, like product development, bringing in management talent and expanding their marketing efforts. Since venture leasing is more cost effective than venture capital, requires no board representation or loss of management control, and usually results in little or no equity dilution, this rapidly growing financing for start-ups is reaching the radar screens of many savvy entrepreneurs.
George Parker is a Director and Executive Vice President of Leasing Technologies International, Inc. ('LTI'), responsible for LTI?s marketing and financing efforts. A co-founder of LTI,
Mr. Parker has been involved in secured lending and equipment financing for over twenty years.
Mr. Parker is an industry leader, frequent panelist and author of several articles pertaining to equipment financing.
Headquartered in Wilton, CT, LTI is a leasing firm specializing nationally in direct equipment financing and vendor leasing programs for emerging growth and later-stage, venture capital backed companies. More information about LTI is available at: http://www.ltileasing.com.
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