Venture leasing is a financially rewarding but risky way for start-up companies to finance their infrastructure and equipment needs. From the late 90's onwards, venture leasing as a financial device is increasing in popularity. It is a combination of traditional leasing and venture capital that is meant to look into the needs of a certain market segment.

Not everyone will find venture leasing advantageous. Venture leasing is perfect for the start-up company with its first round of venture leasing which would like to get an IPO and retain as much equity-based venture capital as possible. But prior and careful contemplation and decision making is required before taking up a venture lease.

The benefits of venture leasing to start-up companies are many:

A properly structured lease guarantees substantial cash savings.

It acts as a source of financing for companies that don't qualify for traditional or bank leases.

There is no need to commit all of a company's assets to a venture lease. The leased asset is enough to act as the primary collateral for the lease.

Flexibility.

Venture lease obligations can be practically done ''off the balance sheet''. This means that the lease obligations to acquire assets will not appear as assets or liabilities on a company's balance sheet.

Can accommodate ''sale-leaseback'' systems.

If you are considering getting a start-up lease, or would like to know more about venture leasing, you can contact the Graphic Savings Group.