"Our experience with Alliance Capital Ventures could not have gone better for us. The Alliance team took the time to understand our unique niche in the aviation industry, and then worked diligently to identify the right funding partner that could understand our needs."
Larry Serlo, CFO
I2I Engines, LLC
"When any of our portfolio companies have equipment financing or venture debt requirements, we often recommend the services of Alliance Capital Ventures."
Brenda D. Gavin, Partner
Most start-up companies need to make capital expenditures to implement their growth plans. These same companies are typically concerned with conserving cash. Deciding to lease their equipment then becomes a strategic advantage. Leasing enables companies to get the equipment they need to grow and manage cash flow.
Developing companies can lease equipment through an application process that looks at its credit history. Companies backed by venture investors are able to establish larger lines of credit used for on-going equipment purchases.
Debt vs. Equity
As a company continues to grow, the need for capital may still be critical. Additional investor equity is a common solution, but increasingly companies are turning to term debt to help fund their growth. Loans backed by assets (accounts receivable, inventory or fixed assets) are the most common and frequently provide a cheaper source of funding than raising more equity and diluting shareholder value.
Middle market companies often find they need to make significant capital expenditures to take advantage of new opportunities in their market. They may be faced with a strategic acquisition opportunity that will enable them to scale the business to a new level. Funding expansion plans through new equity or cash flow are options, but using leasing , term debt or working capital lines often provide the most economical and substantial solutions.