Venture and Expansion Stage Leasing
Fountain focuses on financing tangible fixed assets for companies at various stages spanning from pre-revenue to late stage growth. We are agnostic with regard to the industries we serve and the collateral we finance (spanning from furniture and IT servers to laboratory and production equipment). We provide custom-tailored lease structures that are non-restrictive, non-dilutive, and complementary to a business’s existing capitalization. By utilizing our financing, clients oftentimes experience increases in working capital, increases in cash runway and a reduction in equity dilution – the underlying principal being that we support businesses investing equity capital in higher returning aspects of the business such as sales and marketing, operations, and special projects rather than depreciating fixed assets. Traditionally, our financings take one of two forms:
Lease Line of Credit
Lease Lines of Credit are designed and structured to meet future financing needs related to capital expenditures. A Lease Line extends credit over a period of time where draws are made by the company in order to make certain asset purchases. With that in mind, businesses we work with in this capacity are generally growing, and as a result, have a continued need for investment in infrastructure. While constructing a Lease Line of Credit, we spend time understanding the immediate and long term capital needs , the cadence by which assets are being procured, and provide a financing program that complements the operating plan of the business.
Sale Leaseback transactions are designed to provide businesses with a one-time infusion of cash. In most circumstances, a business owns unencumbered fixed assets, sells the assets in return for cash proceeds, and concurrent with the sale, agrees to lease the assets over a period of time. Businesses we work with in this capacity are generally growing and seeking an improvement in working capital or refinancing an existing lender or lessor. While constructing a Sale Leaseback, we spend time understanding the assets being financed and how our financing will complement the operating plan of the business.
Access to capital
Grow your business with incremental capital
Increase your cash runaway by financing your capex purchases
Minimize dilution by utilizinig a non-dilutive source of capital
No covenants, blanket liens, or restrictive operating covenants
Through working with numerous businesses over the years, we have created a process to make decisions efficiently and quickly. During our review and evaluation process we ask for specific business information, a description of the asset(s) being financed, and time with a member of management in order to deepen our understanding the business model. Through our non-formulaic and non-checkbox approach to underwriting, we have the ability to understand both standard and complicated credit situations and provide financing terms within 2 to 4 days following our review of information. We have flexibility in our financing structures related to term/duration, structure (e.g. we can structure both capital leases and operating leases), and monthly repayment rates.