Essex Capital Venture Leasing works with top-tier venture capital firms to provide equipment financing so that the funded firms suffer less equity dilution. By utilizing Essex Capital’s venture leasing program, start-up companies can lower costs, build enterprise value and preserve ownership. Essex Capital Venture Leasing is a creative vehicle that allows start-up companies to finance certain infrastructure and equipment needs, while preserving their equity position. Every year, venture capitalists fund more than 2,500 start-up companies in the United States.
Essex Capital Venture Leasing’s structured financing provides companies with access to the equipment they need, while our knowledge and relationships with venture capital companies offers the partnerships needed to face the challenges in the market, together.
Traditional methods of funding a purchase are not always practical or necessary. Essex Capital Venture Leasing is a flexible, innovative and alternative financing vehicle to the traditional method of using working capital or borrowing money. Venture leasing provides several benefits that traditional bank financing cannot provide. The underlying equipment usually secures venture leases, without any restrictive financial covenants. If a bank decides to lend to an early stage company, they will often require blanket liens on all company assets, and in many cases, require guarantees from the principals. Limitations like this can cause delays and have a direct impact on growth. When start-ups need additional financing and a sole lender has encumbered all assets or required guarantees, these young companies become less attractive to other financing sources.
Our goal is long-term partnerships where our expertise in leasing, lending, finance, and venture capital-backed companies can help our customers reach their ultimate goals. Companies needing the operating cash to support their working capital can rely on Essex Capital Venture Leasing to provide the equipment leasing and financing required to support their business needs. Our willingness to create client-specific payment structures that align with your business model removes inefficiencies, saves valuable time and offers you a flexible structure for the future.
Essex Capital will consider lease lines ranging in size from as little as $200,000 to well over $5,000,000 depending on the lessee’s need, credit strength and Venture Capital involvement. Terms typically range between 2 to 5 years, payable monthly. The quality and useful life of the underlying equipment are also important elements of venture leasing. Essex Capital offers flexible end-of-lease options for business essential equipment that include the ability to buy the equipment, renew the lease at fair market value or, return the equipment to Essex Capital.
Essex Capital Venture Leasing has been a successful financing vehicle for start-up companies seeking to build a larger enterprise. Additionally, Essex Capital Corporation can locate equipment at lower prices, assist in selling old equipment, and introduce key partners and capital connections. When used properly, venture leasing can dramatically assist early stage companies.