Whether its a pharmaceutical company working on a promising new drug, or a food manufacturing company developing a new sustainable product, scientific breakthroughs rely on analytical instrumentation.
A growing number of early-stage companies turn to instrument financing programs as a way to get their much-needed lab equipment without diluting equity.
The initial stages for start-ups can be a thrilling adventure. But taking a start-up through the opening gates requires significant investment, especially for scientific companies.
Getting seed or series funding is a challenge in and of itself. Choosing your funding sources, meeting with venture capital firms, determining how much money you need, then nailing your pitch.
Asking for (and acquiring) funding is a tough process. Once an early-stage company has secured seed or series funding, the focus turns to how best to use that capital.
After receiving seed or series funding from investors, the pressure to stretch every dollar can be overwhelming. When energy should be focused on improving products and growing the business, there is an equivalent pressure to preserve capital.
Early-stage companies looking to reduce pressure and maintain control are exploring alternatives to equity financing, and turning to debt-financing as an innovative way to funding their business.
Instrument financing programs enable seed and series-funded companies to acquire much needed lab equipment without diluting equity.
Pharmaceutical or biotechnology start-up companies often need a complete workflow of analytical instrumentation for R&D and quality assurance and control purposes.
Sophisticated analytical instrumentation, specialized equipment, and ancillary lab supplies and consumables can add up to hundreds of thousands of dollars (if not over a million dollars).
This is where the value of financing comes into play.
Opting to finance instead of a direct upfront purchase allows early-stage companies to preserve their capital and avoid diluting equity. Consistent, affordable monthly payments can be factored into the monthly budget cycle.
Examples of Instrument Financing Programs for Seed or Series-Funded Companies:
Instrument Financing Program #1 – $1 Buyout Capital Lease
With a capital lease, you can preserve your capital while getting lab equipment into your lab. At the end of the lease term, you own the equipment for a nominal buyout fee – usually $1.
Instrument Financing Program #2 – 0% Interest Financing Over 12-Months
Get the instrumentation you need without the high upfront cost. Spread the cost evenly over 12 payments without paying interest.
Instrument Financing Program #3 – Rentals-with-Equity
A rental-with-equity program is like a “try before you buy” plan. A set portion of your monthly rental payments goes towards buying the rented instrument at the end of the term.
Instrument Financing Program #4 – Sale Leasebacks
Turn recently purchased lab equipment into capital. We’ll purchase the asset from you and lease it back to you in monthly payments. (You maintain operation throughout the process).
Learn more about lab equipment sale leasebacks, and how they work.
Instrument Financing Programs Offer a Strategic Advantage for Your Early-Stage Company
Let us show you how your seed or series funded company can take advantage of instrument financing programs. Early-stage businesses can finance equipment without diluting equity and protect their ownership stake in the business.
Our debt financing programs can help your business budget and plan for the future.
