deal is LTI looking for ?
LTI offers lease lines to emerging growth companies to cover customers'
equipment financing needs for one year going forward. The line size falls
within a range of $250,000 to $1,000,000, depending on the credit. In
some cases, transactions larger than $1,000,000 can be funded by an LTI
led syndication. Vendor leasing programs target customer leases of at least
$25,000 and total lease volume per vendor of $1,000,000 or more.
of equipment is acceptable/unacceptable ?
Equipment financed is considered to have a determinable value in the secondary
marketplace, usually consisting of brand name computers, laboratory equipment,
test equipment, manufacturing and production equipment, and other office
automation equipment. Our vendor leasing programs focus in the energy,
security, medical and technology arenas. Excluded equipment includes rolling
stock, titled vehicles, restaurant equipment, fixtures and leasehold improvements.
What kinds of credits will LTI accept ?
We consider the reputation and support of the customer's investors, the caliber of
its management team, product/service prospects, size of industry, liquidity of
lessee, and quality of equipment to be financed.
For vendor leasing programs, we look at vendor's management, annual sales volume,
a minimum three year business track record and the anticipated lease volume.
Most of our customers are involved in high technology or information services,
specializing in telecommunications, biotechnology, healthcare, software,
Internet or other technology markets.
What are the basic terms/pricing of LTI leases ?
Transaction terms vary with equipment type and credit strength, usually
ranging from 24 to 36 months in Venture transactions and 90 days to 60 months
in our Vendor financing arrangements. LTI does not require warrants from its
venture customers to decrease the monthly payments, however warrant transactions
may be structured if desired. End-of-term options
offered often include renewal alternatives, a fair market value
purchase or return of equipment.
What geographic area does LTI cover ?
USA - all 50 states.
How much does LTI pay in fees ?
Broker/intermediary fees are generally 1-2% of the cost of the equipment.
What type of information should be initially submitted for review ?
A business plan should be submitted containing the following information: description of the product or service, brief history of the company, business and
marketing strategy, analysis of the market and the competition, and resumes
of key management (highlighting industry and market expertise). In addition, we require
financial statements (audited, if available), five year financial projections, a description of the
equipment to be financed and a capitalization table showing the breakdown of shareholders
by investor name, terms of investment and equity percentage held.
What is the typical turnaround time for a transaction?
After a proposal letter has been signed and returned, the lessee is immediately
sent a complete lease documentation package for the lessee's review and,
simultaneously, LTI begins its credit due diligence. The credit process
and finalization of documentation usually takes three weeks.