Contract Financing
Graco Mortgage

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Contract Financing
Getting you the Capital You Need
Our Primary Goa is to work with you to assist you in getting the funding you need for your  next project. One of our primary ways of providing funds is through the use of a funding mechanism known as:
Monetization Financing
Monetization Financing (also known as Contract Monetization) can be utilized when you have an Obligor (also known as the Guarantor) of a project who is willing to guarantee the funding Unconditionally. They will need to have an investment grade of BBB or better. When we discuss you project I can go into greater detail about the specifics, but here  are some general bullet points.
  • Funds requested must be $5,000,000+ (no upper limit)
  • BBB or better Investment Grade Entity (private transactions can be looked at)
  • Payment Deferral up to 7 years
  • Repayment terms up to 25 years
  • All industries considered

Who, What, When, Where, Why & How Of Contract Financing

Who can benefit from Contract Financing?
Literally, there are thousands of small companies - ranging from long lived to emergent - that either have or are working on contacts with investment grade credits. These companies could use our help to provide desperately needed capital to complete their contracts.

What is Contract Financing?

Graco Mortgage Contract Financing (or monetizing) is a very flexible financial tool providing a number of capital options - much less expensive and onerous than equity or sub-debt. So long as there is an equipment component, contact financing can be used to:

  • Acquire equipment necessary for the fulfillment of a service contract
  • May provide much needed working capital to run your business and/or develop infrastructure to facilitate the contract services
  • Refinance existing equipment and improve cash flow
  • Accelerate contract revenues
  • As an entree' to repeat business

Each transaction is a custom product designed to meet the needs of you and your customers.
Graco Mortgage provides contract financing for just about any contract where a component of equipment is necessary to complete the contract. There is a provider (usually a smaller company) and an end user (Investment Grade). The term of a Contract Finance can be as short as 12 months, or as long as 10 years. This product has a variety of applications and has worked successfully with:

  • Service Agreements
  • SOWs
  • Warehouse Agreements
  • Distribution Agreements
  • Municipal Contracts of $5 Million and above
  • Federal Contracts of $10 Million and above

Why can the Contract Finance product be valuable to you and your customers?

Graco Mortgage's Contract Finance deals are averaging close to $6 million per transaction (although we have a number of contracts in various stages of process that would dramatically increase that average). This form of financing could be extremely valuable to smaller companies that don't have the resources to buy equipment or adequate working capital. In many cases, it can be used as an alternative to equity or to augment existing equity in the provider company. In fact, many smaller companies do not bid large contracts for fear that they will be unable to fulfill them because of a lack of capital. The equipment necessary to fulfill a contract can be existing equipment that is refinanced or sold and leased back, or brand new equipment that is located at either the providers or the end user's location. These need not be a new contract to quality for Contract Financing. Graco Mortgage can monetize the remaining balance/term of an existing contract.

How does Contract Financing Work?

Graco Mortgage will work with you and provide language, which is embedded in the contact via addendum, that will allow Graco Mortgage to take an assignment of all or a portion of the future revenues. A present value of those revenues will give you the capital you need to complete the contract. In many instances, Graco Mortgage is able to provide a present value consisting of even more than the essential capital needed to acquire the equipment, injecting much needed working capital.

Do you need funds to tool up for a large job?
Do you have a large contract that requires you to spend an excessive amount of up front money to get the project moving forward?
We can solve these problems by lending against the contracts you currently hold, up to 100% of the contract amount.
This financing product enables; businesses or private persons to garner advanced funding on unconditional contracts which are investment grade. Due to the uniqueness of this product, one is in a position of buying rather than selling.
State of the market: This product is not readily available in the market. It is not asset based. No brick and mortar and appraisals are required in order to facilitate this product.
7 Reasons Why This Product Is The Best In The Market
1. Ease of Close
2. Flexibility of structuring (deferred payments, repayment start date, etc.)
3. SPEED of funding (Two weeks typically)
4. NO SURPRISES (not for you, the client, or anyone else)
5. NO upfront fees (other than $1500 Due Diligence fee)
6. No other fees (such as renewal fees, underwriting, or closing)
7. NO Equity to give away
Ideal Clients:
Professional Athletes
movie Production Companies
Alternative Energy businesses (bio-diesel, ethanol, coal, etc.)
CEO's and Executives (golden parachutes clauses)
Large equipment manufacturers
Lawyers who handle structured settlements
Low Income Housing Developments (tax credit collateral)
Tax Credit holders
Large annuity and CD accounts
Natural Resource businesses (ore, copper, precious metals, wind turbine farms)
Banks who issue Letters of Credit
Banks who issue "product financing" (pick up where they leave off)
Large retailers (Walmart, Costco, Target, Toys R Us, etc.)
Timberland and other natural harvest companies
Technology companies
Hard money lenders
Non-profit organizations
Financial Planners
Business Brokers
Hollywood professionals
Universities (endowments)
Contact us today to get the financing you need for tomorrow.