GREAT NEWS!!!  For a limited period of time Stalwart Contract Finance will consider transactions where the end user is a larger, very profitable unrated credit, or a couple of tiers below investment grade.  The contract terms will need to be on the shorter side and the minimum amount of the contracts still needs to be $1 million or more.

We’ve seen many of these deals but have been unable to fund them given our stringent past credit requirements.  We would be happy to readdress transactions that were close, but not quite there.  Please get back to us on any deals that fit our current requirements. This really opens up the number of potential contract finance deals!

$4.7 Million Data Center

Our provider has data centers and provides I/T services to large investment grade companies.  Our provider tried to get their end user to enter into a capital lease but the end user was unwilling to because of tax constraints.  Stalwart approved and provided a data service agreement that satisfied the end user needs and gave the provider $4.7 Million in equipment, software and working capital.

$2.3 Million Cloud Computing

Stalwart worked with a company to provide cloud computing services to the wholly owned subsidiary of a Standard and Poor’s single A bond rated credit.  Our Contract Finance product not only allowed for the cloud computing company to acquire new equipment but also provided for additional cash to buy some additional IT assets from the end user.  This got unwanted assets off the end users books.  Deal was $2.3 Million with more schedules likely.             

Both deals have 2 points built in for the brokers.

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