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is the conversion of current and future payment obligations
The Buyer must have investment grade credit (BB+) or suitable collateral (e.g. SBLC)
It's that simple!
It Sounds too Easy - What's the Catch?
The contract must be fair. Both the Seller (e.g. developer, business owner, manufacturer...) and the Buyer (e.g. purchaser, off-taker, lessor, guarantor...) must benefit from this transaction.
The "catch" is the issue of Risk (to the buyer) and must be addressed. Let me explain; The buyer is committing to an "irrevocable and unconditional contract with a "hell or high water clause" that guarantees "sum certain and date certain" payments will be made to the lender (or entity that purchases his security). What if the developer dies and the energy plant never comes on-line? What if less expensive sources of energy become available before the contract expires? The contract(s) must address this issue!
Underwriting Guidelines: Click Here
The Greenman' contract monetization team will address these issues and provide fair contracts, or addendums to existing agreements, that protect both the buyer and seller. We have access to investment bankers and "additional collateral" sources that offer low interest rates.
We also have developed a proprietary financial model that, where appropriate, mitigates the risk to the buyer/guarantor, even if the plant is never built or the product is not offered.
of Contract Monetization
From the Sellers Perspective:
1. No $$$ maximum loan size ($1MM minimum) & no geographical limits - all industries
2. Flexible repayment structure: 1 - 30 years (some lenders want 5 years minimum)
3. No credit check on the seller; the loan is based upon the off-taker's credit or collateral
4. No analysis of the project (other than it's real)
5. Fast closings; as little as one week after contracts are signed
6. Non-recourse to the seller (and buyer)
7. No collateral required; the assets remain unencumbered
8. Small up-front fees (possible legal costs, documentation and due diligence fees)
9. Flexible Payment Terms; e.g. payments can be delayed until the plant is operational
10. Competitive, fixed rate interest rates (competitive with bank rates)
From the Buyers Perspective:
1. The buyer, or guarantor, obtains the good and/or services they desire
2. Typically the buyer and seller will enter into a 2nd agreement that will mitigate buyer's risk and
compensate buyer/guarantor for any additional costs
3. Contracts can typically be classified as off-balance sheet for both the buyer and seller