Capitalizing on the Chaos:
Creative Capital in a Post-COVID Economy

There is always opportunity in chaos. Over the last twelve months, companies sought a pandemic economy emergence that transcended stability or even a return to whatever normal used to be. The last year brought a monumental transition in working environments, seismic customer behavior shifts, and previously unimaginable government spending. Companies faced, and continue to face, a once-in-a-generation move in digital transformation (DX), business model evolution, product innovation, and go-to-market strategy. If companies capitalize on the opportunity at hand, it’s a shift that can reshape competitive landscapes—forever.

Is your company capitalizing on the chaos?

Logistics operations are accelerating investment in warehouse automation. Digital customer experiences are transforming retail shopping. Healthcare and biotechnology are beginning to reach beyond protection and prevention to improved quality of life with technologies that were once science fiction.

With an economy poised to surge as the world citizenry regains the freedoms of a post-COVID life, now is the time to act on the breakthrough strategies that recover, improve and disrupt your industry. But realizing the benefits of a bold plan requires more than vision. It requires capital.

Are you facing challenges accessing capital for your post-COVID growth strategies?

Many cutting-edge companies find themselves at the intersection of robust growth plans and limited access to capital. Bank lending is often an inadequate funding mechanism for early-stage innovators and high-growth firms. Their underwriting is built on the principle that past performance is the best, and in too many cases the only indicator of tomorrow’s outcomes. But recent events have been less than favorable to many higher growth companies. If they’re underwriting your past, (or your recent performance) they are unlikely to meet tomorrow’s capital needs.

Accordingly, early-stage and higher growth companies find themselves in the shuffle of investment presentations on the desk of private equity firms, venture capital, and investment banks. These are critical conduits to capital for many companies working to realize bold visions coming out of the crisis. The good news about these capital sources is the available ‘dry powder’ on the sidelines waiting for a suitable investment. The more challenging part is that it can take real-time to achieve this partnership, and the world is moving very quickly. Additionally, your company’s trading ownership for the capital you need to succeed may be necessary, but it’s expensive. The cost of equity is always higher than the most costly debt.

The reality is you need both bank capital and equity capital. But you might need something else. You might need a lender to fill a niche or gap where the banks won’t go while preserving equity for the highest return investments. You might need a lending resource that complements the lenders of your capital structure or ‘capstack’ and expands your access to funding.

Capitalizing On The Chaos: Creative Capital In A Post-COVID Economy

Need creative capital to come back from the chaos?

For example, Apple, Amazon, Tesla, and even Microsoft. These were all companies that didn’t fit traditional underwriting models at one point. Traditional lenders wanted to underwrite IBM, Blackberry, and long-distance phone companies. The past doesn’t always predict future performance. Whether you are turning around a struggling enterprise with a robust new growth plan, breaking into a market with a new concept, or growing faster than your historical infrastructure can support, you need a lender to invest in your future, not just your past.

As companies invest in digital transformation, new product lines, acquiring new revenue-producing equipment before realizing growth revenues, six, seven, and eight-figure investments are often required. Without the critical infrastructure from new equipment and technology powering your business, growth plans remained limited or shelved entirely.

A creative equipment and project lender willing to invest in your future, your story, can offer solutions that preserve cash, equity, maximize cash flow, tax positions, and even complement other senior lending relationships. These ‘ story ‘ lenders can overcome underwriting challenges traditional lenders deem unreachable because of their extensive equipment knowledge and experience working with early-stage and high-growth companies. Armed with a deep understanding of your vision, story lenders solve problems with a commitment to find ways forward and get the deal done. Story lenders might be the key to capitalizing on the chaos and realizing growth plans.

Are you facing challenges accessing capital for your growth strategies?

Have a vision for the post-COVID economy?  Does that vision require an equipment or technology need?

With roots in technology and innovation, NFS Leasing has funded the equipment and project needs of early-stage, turnaround, and high-growth firms for almost two decades.  Deploying capital to companies requiring funding beyond the limitations of traditional lending, we are committed to digging deeper, getting creative, and solving the problems that empower you to capitalize on the market opportunities.

Questions? Contact NFS Leasing Today.