SGC’s structure and requirements for collateral and repayment relating to purchases of equipment differs from equipment leasing and other traditional equipment finance channels. Monetization Financing provides powerful access to funds, and can be used advantageously by either sellers or buyers of equipment. A major differentiator of SGC’s Monetization Financing over traditional equipment financing is that repayment of funds from SGC is not limited to the useful life or nature of the equipment. To the Seller, availability of Monetization Financing basically makes the equipment purchase by an investment-grade rated Buyer easier from several perspectives. More equipment may be able to be purchased, and certain purchases may be undertaken that may not have occurred through more restrictive traditional equipment finance channels. For the Buyer wanting to purchase big-ticket equipment, this funding model provides certain attendant advantages. These advantages include deferred and/or extended repayment terms and the ability to acquire more equipment now than current budgets allow.

Sample Transaction : An investment-grade rated University is looking to fund the build out of a new biotech lab on their campus. They have identified one of the leading companies providing turnkey lab development solutions. The total cost significantly exceeds the University’s current budget but they recognize the value the lab will bring to the University and would prefer to develop it now rather than waiting several years for the full budget to be approved. SGC can fund the upfront costs and defer the commencement of repayment until such time that the facility is up and running allowing for a larger student population use of the new facilities and a larger amount of budgetary funds to be directed towards that department. This is a big “win” for both parties. The lab developer gets paid in full on an upfront basis and obtains business that it might not have been able to get without this funding product and the University gets their new biotech lab without having to wait several more years or requiring the University to divert funds from other departments and/or other projects.