SGC provides companies that are seeking capital the ability to monetize future revenue streams from service, supply, maintenance and other similar agreements that they have with investment-grade rated entities. This can be accomplished with an amendment to an existing agreement or a new agreement that provides for sum-certain and date-certain unconditional promises to make minimum required payments. Clients can often leverage SGC’s funding to win business. That is, they can push out some of the payment obligations to make the deal more appealing to their customer knowing that they will get Monetization Financing and reap the present value of the future revenue stream. In a competitive marketing place, this strategy can provide a significant advantage over the competition.

Sample Transaction : A contract manufacturer of pharmaceuticals has a multimillion dollar, five year contract with an investment-grade rated big pharma company. The contract manufacturer is seeking capital for operations and would prefer not to go to the equity markets or pay high fees for debt financing. The contract manufacturer was able to get the big pharma company to agree absolutely and unconditionally to make certain required minimum payments on a quarterly basis in years four and five of the contract. SGC provided Monetization Financing and provided the contract manufacturer with the present value of the future minimum payments at investment rates, on a non-recourse basis, without any fees, points, or equity.