CleanTech Startup Receives First Financing Capital to Purchase Mission-Critical Equipment
An early-stage startup that develops energy-efficient heating and cooling systems got their first financing capital through CSC, even at a stage that is often too early to leverage traditional funding options.
Challenge
An extremely early-stage startup that develops solid refrigerants for next-generation energy-efficient heating and cooling systems required funding to purchase an initial mission-critical piece of equipment that carried a $50,000 price tag.
The company was affiliated with an accelerator that helps CleanTech and other organizations launch and grow, so it had raised some initial funding, but outside of that equity it had no relationships with creditors.
Solution
A current CSC client that was also affiliated with the accelerator referred the company to CSC. CSC offered the startup a lease—which is their first financing capital outside of the equity they’ve raised—to cover the cost of the equipment.
Results
For the company—that is at a stage that is often too early to leverage traditional funding options—the equipment lease from CSC enabled them to push the business forward. They now have a potential long-term business partner in CSC that can help them continue to grow and eventually scale their game-changing clean technology.
Benefits
By partnering with CSC, the organization is realizing these benefits:
- Lease lines to $50 million
- Non-dilutive financing with no covenants or warrants
- Predictable payments spread out over several years
- Freedom to work with the vendors of their choice
- Simple, flexible underwriting process
- Full-service procurement support
- End-to-end asset management