grade entities into cash that can be used for any business purpose.
Funding for Government Programs and Projects
Federal Government Programs
The U.S. government is the single largest purchaser of goods and services in the world.
Although certain Federal expenditures entail specific appropriations, a significant portion of Federal spending each year flows from general “Operations & Maintenance” (O&M) funding.
In the interests of efficiency, Congress has enacted many laws enabling Federal agencies to use O&M funding in the most intelligent ways possible, including the use of leasing, performance contracts, and service contracts.
Such contracts enable Federal agencies to avoid large up-front costs for goods and services, and instead make periodic payments over time.
We can help federal contractors by financing the value of their contracts in advance of receipts from the government.
Since most businesses cannot easily operate under the financial pressures placed on their cash flow and balance sheets by installment payments, financing with us actually facilitates doing business with the federal government.
With solid financing programs in place, companies seeking to win business from the federal government are able to bid more aggressively, confident in the knowledge that they will have the financial wherewithal to deliver on a contract on terms conducive to the company’s success.
State and Local Government Programs
State and local governments across the U.S. are large, repeat purchases of goods and services.
As such, these government institutions are desirable customers for any company.
However, certain government programs involve compensation or reimbursement over time.
We can help government contractors by financing the value of their contracts in advance of receipts from the government.
Since most businesses cannot easily operate under the financial pressures placed on their cash flow and balance sheets by installment payments, financing with us actually facilitates doing business with government customers.
With solid financing programs in place, companies seeking to win business from the government are able to bid more aggressively, confident in the knowledge that they will have the financial wherewithal to deliver on a contract on terms conducive to the company’s success.
Example: Municipal Building Retrofit of Energy Savings Equipment
Our funding strategies ensure that payments made by the governmental beneficiary of the energy equipment retrofit, for example, are always less than the projected energy savings and that payment commences and always occurs after projected energy savings are realized.
This allows the governmental entity to upgrade its infrastructure today and begin realizing net energy
savings immediately upon installation completion.
This creates a never out of pocket and infinite rate of return scenario on the investment
in the energy savings installation.
- Can Pay from Projected Savings
- Avoids Capital Budgets
- Fast and Efficient
- Private Transaction
- Ability to defer Repayments
- Allows Governmental Entity to Choose Payment Structure, Amount, and Terms
- Competitive Interest Rates
- No Fees, Points, or Covenants
Two significant requirements are needed for a client to utilize Monetization Financing:
- An absolute and unconditional promise to pay from an investment-grade rated Obligor;
- Date-certain and sum-certain payment obligations.
An investment-grade Obligor is typically rated by S&P and/or Moodys with an acceptable rating. If a company is not rated, there are alternate procedures to qualify the Obligor. An Obligor is an entity which has contractually agreed to make absolute and unconditional payments to the client for a term of between 1 – 20 years.
Where Monetization Financing Works Best:
- Service and Supply Agreements
- License Agreements
- Energy Savings Contracts
- Waste-to-Energy Facilities
- Renewable Energy and other Green Initiatives
- Real Estate and Project Funding for Cities and Counties
- Deferred Compensation
- Real Estate and Infrastructure
- Funding for Government Programs and Projects
- Monetization Financing vs Traditional Funding
- Monetization Financing Benefits
- Monetization Financing FAQ’s
Simply stated we offer the best financing package available to investment grade entities – low interest rates, no equity or board seats, no covenants, no oversight and done in a quick and efficient manner.
Industries Where Monetization Financing is Working:
- Waste Management
- Water Purification
- Green Energy (Power Purchase Agreements)
- Waste-to-Energy Facilities
- Wind Turbines and Solar
- Oil and Gas
- Wastewater Treatment Plants
- Food Processing
- Nearly all industries can be approved!