Empirical and theoretical
Private sector involvement in the design, construction, and operation of capital goods has an extensive history. For example, the Perrier brothers were given a licence to supply water to Paris for 15 years in 1782 (a contract that was later rescinded by the Revolutionary government).
Large public projects in the nineteenth century, such as the Suez Canal and US railroads, were also designed, constructed, financed, and operated by the private sector. However, Leiringer and Michaud have argued that the first modern and significant use of a PPP arrangement was by the Turkish government for the construction of nuclear power projects in the early 1980s.
Read the rest of this entry »
Posted in: Economic
Successful Business Owner
The first thing most new entrepreneurs have to take into account in order to begin a business online or off is funding, or start-up capital.
Depending on the sort of business you have in mind the figures can go anyplace from a couple of hundreds to more than a million dollars. Heck just to have the rights to start-up a McDonald’s today is 1.3 million dollars. That is before you buy a the land, get a contractor to build hr building, get supplies, hire staff, etc. etc. The average McDonald’s owner takes 7 years to recoup there upfront cost. 7 years…do you have 7 years to wait?
Read the rest of this entry »
Posted in: Business
Venture Lease Pricing
What determines venture lease pricing and how does a prospective lessee get the best deal? First, make sure you are comfortable with the leasing company. This relationship is usually more important than transaction pricing. With the rapid rise in venture leasing over the past decade, a handful of national leasing companies now specialize in venture leases.
A good venture lessor has a lot of expertise in this market, is accustom to working with start-ups, and is prepared to help in difficult cash flow situations should the start-up stray from plan. Also, the best venture lessors deliver other value-added services – such as assisting in equipment acquisitions at better prices, trading out existing equipment, finding additional venture capital sources, working capital lines, factoring, temporary CFOs, and introductions to potential strategic partners.
Read the rest of this entry »
Venture Leasing Works
Generally, a major round of equity capital raised from credible investors or venture capitalists makes venture leasing viable for the early stage company. Lessors structure most transactions as master lease lines, permitting the lessee to draw down on the lines as needed throughout the year.
Lease lines usually range in size from as little as $ 200,000 to well over $ 5,000,000, depending on the lessee’s need and credit strength. Terms are typically between twenty four to forty eight months, payable monthly in advance. The lessee’s credit strength, the quality and useful life of the underlying equipment, and the lessor’s anticipated ability to re-market the equipment during the lease often dictate the initial lease term.
Read the rest of this entry »
Posted in: Business
Venture Leasing
In 2003, venture capitalists and investors dispensed over $18 billion to promising young U.S. companies, according to VentureOne and Ernst & Young Quarterly Venture Capital Report. Less documented and reported is venture leasing’s activity and volume. This form of equipment financing contributes greatly to the growth of U.S. start-ups.
Yearly, specialty leasing companies pour hundreds of millions of dollars into start-ups, permitting savvy entrepreneurs to achieve the biggest ‘bang for their buck’ in financing growth. What is venture leasing and how do sophisticated entrepreneurs maximize enterprise value with this type of financing? Why is venture leasing a cheaper and smarter way to finance needed equipment when compared to venture capital?
Read the rest of this entry »