RANDOLPH CAPITAL LLC www.MonetizeServiceContracts.com
WHO, WHAT, WHEN, WHERE, WHY & HOW OF CONTRACT FINANCE
WHO can benefit from Contract Financing?
Literally, there are thousands of small companies – ranging from long
lived to emergent - that either have or are working on contracts with investment
grade credit. Companies that need Working Capital to complete their contracts.
WHAT is Contract Financing?
Contract Financing (or monetizing) is a very flexible financial tool providing
a number of capital options - much less expensive and onerous than equity or
sub-debt. So long as there is an equipment component, contract financing can
be used to:
Acquire equipment necessary for the fulfillment of a service contract
May provide much needed working capital to run your business and/or
develop infrastructure to facilitate the contract services
Refinance existing equipment and improve cashflow
Accelerate contract revenues
As an entre’ to repeat business
Each transaction is a custom product designed to meet the needs of
you and your customers.
We provide contract financing for just about any contract where a component
of equipment is necessary to complete the contract. There is a provider (usually
a smaller company) and an end user (investment grade). The term of a Contract
Finance can be as short as 12 months, or as long as 10 years.
This product has a variety of applications and has worked successfully with:
Service Agreements
SOWs
PPAs
Warehouse Agreements
Management Agreements
Distribution Agreements
Muni Contracts of $5 Million and over
Federal Contracts of $10 Million and over
WHEN can you get started FINANCING Contract Finance deals?
IMMEDIATELY!
WHY can the Contract Finance product be valuable to Customers?
This form of financing could be extremely
valuable to smaller companies that don’t have the resources to buy equipment or
adequate working capital. In many cases, it can be used as an alternative to
equity or to augment existing equity in the provider company. In fact, many
smaller companies do not bid large contracts for fear that they will be unable
to
fulfill them because of a lack of capital. The equipment necessary to fulfill a
contract can be existing equipment that is refinanced or sold and leased back,
or
brand new equipment that is located at either the provider’s or the end user’s
location. These need not be a new contract to qualify for Contract Finance. We
can monetize the remaining balance/term of an existing contract.
HOW does Contract Financing work?
WE will work with you and provide language, which is embedded in
the contract via addendum, that will allow us to take an assignment of all or a
portion of the future revenues. A present value of those revenues will give your
customer the capital they need to complete the contract. In many instances, we
are able to provide a present value consisting of even more than the essential
capital needed to acquire the equipment, injecting much needed working capital.
Go To: RANDOLPH
CAPITAL LLC CONTRACT FINANCING CHECKLIST
RANDOLPH CAPITAL LLC
www.MonetizeServiceContracts.com
Tel 386-789-9441
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