Venture Capital Leasing and Financing:
VFS works with venture capital firms and start-ups to provide equipment financing, which reduces the amount of Equity needed to fund the company. By utilizing our venture leasing program, companies can lower costs, build enterprise value and preserve ownership. We offer a creative vehicle that allows start-up companies to finance certain infrastructure and equipment needs, while preserving their equity position.
Creative Structured Leasing and Financing:
Traditional methods of funding a purchase are not always practical or necessary. VFS offers a flexible, innovative and alternative financing vehicle to the traditional method of using working capital or loans. Our leasing alternatives provide several benefits that traditional bank financing cannot. The underlying equipment usually secures the leases, without any restrictive financial covenants, whereas banks will often require blanket liens on all company assets. Limitations like this can cause delays and have a direct impact on growth.
VFS has the ability to provide lease financing for any and all capital asset acquisitions, including new, or high-quality name brand, refurbished previously owned equipment.
In addition, we may be able to purchase and provide lease financing for, currently owned, in place equipment. Send pertinent information and completed Credit Application to email@example.com, and we will promptly review and respond.
This form of financing consists of a true (tax) lease with a shorter term than economic useful life of the Equipment. To qualify as an operating lease the structured financing must satisfy FASB13 Accounting Standards for Operating Leases with particular emphasis on the 90% test where the Net Present Value (“NPV”) of the rental stream, when discount at the Lessee’s incremental borrowing rate, must be less than 90% of the original equipment cost. Again, the Lessor “books” and depreciates the equipment as an asset and the Lessee expenses the lease payments over the life of the lease. At lease end, the Lessor relies heavily on its Asset Management experience to keep the Equipment in operation with the same or another user.
Accounts Receivable Factoring Services:
Accounts receivable financing is a type of asset-financing arrangement in which a company uses its receivables — outstanding invoices or money owed by customers — as collateral in a financing agreement. In this agreement, an accounts receivables financing company, also called a factoring company, gives the original company an amount equal to a reduced value of the unpaid invoices or receivables.
This type of financing helps companies free up capital that is stuck in unpaid debts. Accounts receivable financing also transfers the default risk associated with the accounts receivables to the financing company.