Finance companies and banks have trouble lending to venture backed, pre-revenue, and young or small businesses. Many times, the balance sheets and income statements from these companies appear to be highly stressed and/or leveraged.

These factors require conventional lenders to decline the transaction; while lenders who specialize in these types of companies demand interest rates exceeding 22%, and many times request warranties to mitigate their risk.

Our Unique Strategy
Although these lenders have a place in the market, VLMG offers a different financing model to this type of customer. We offer a “Rental Contract” which requires a Security Deposit - lowering the amount of exposure to a particular client - which in turn diminishes the risk associated with these transactions.

The Lessee will have three options during and after the initial term:

1. Return the system after the initial term and have a small portion of their Security Deposit returned.
2. Renew the contract at the same rate until title to the collateral passes, with 100% of the Security Deposit used as the prepaid purchase option.
3. Apply a percentage of each payment - and 100% of the Security Deposit - toward purchase AT ANY TIME

The VLMG “Rental Contract” offers your prospect a financing option for an intermediate term with title passing after a renewal period, in much the same way title passes with a traditional $1 purchase option. We offer the added flexibility of being able to purchase the equipment AT ANY TIME during the contract, or returning it if things don’t go as planned.