As intial public offerings return to the forefront of the news, another buzzword being heard is Venture Leasing.

What is Venture Leasing?

Venture Leasing is equipment or business leasing options offered to startup firms pre-IPO by a leasing corporation. Venture leasing is a complementary service to venture capital with both options likely aiding a startup business in its incubation period. Often a lessor will have a security interest in the leased equipment in exchange for the added level of risk. On the flip side, a startup company may receive assistance in the form of equipment deinstallation or valuation from the lessor.

The lease can run anywhere from $100,000 to $5,000,000 depending on the size of the startup and its intended market. When deciding whether to offer a lease to a startup backed by venture capital; a lessor will often use 9 months of available cash as a benchmark. Those startup corporations with more than 9 months of cash will likely be approved, barring any mitigating factors.

If you're a startup that is considering startup leasing options, please consider Graphic Savings Group.