Scaling Capital for Managed Service Providers

Fueling Private Cloud and Hybrid Delivery of ICT As-a-Service

Contract Capital is purpose-built to bring capital to Managed Service Providers that offer Recurring Revenue based IT and Communication solutions to commercial customers

The Challenges in Sourcing Capital To ‘Power’ Your Managed Service Practice

  • The XaaS business model requires significant upfront capital to acquire the infrastructure necessary to stand up or scale your solution.
  • Clients of XaaS Solutions are demanding that performance obligations be detailed within your managed service contracts.
  • Dealing with multiple sources of lease or debt financing, depending on the OEM, channel partner, or bank, can be burdensome.
  • Alternative capital (equity raising) is expensive, distracting, complex, and dilutive.
  • It risks the loss of client control if you migrate to the emerging OEM ‘agent models’.

Traditional Sources of Capital Are at Odds With Client Expectations and MSP Requirements

  • Lease financing often does not cover development costs and limits advances on software/non-equipment components.
  • Traditional lenders will not accept client performance conditions within the contract; they only accept “pay no matter what” contracts.
  • OEM lease programs often place limits on or exclude third-party products.
  • OEMs or leasing companies contact, bill, collect, and communicate with your client about your service.
  • Bank debt involves restrictive covenants, pledging of security, and limited borrowing capacity.

Contract Capital’s mission is to be your growth partner, delivering on the terms of a modern ICT marketplace and advancing the capital you need to profit from your client’s desire for outcome-driven, subscription-based services.

The Contract Capital Solution

A superior way to get upfront funding, grow recurring revenues from services, and boost your bottom line.

We provide advance funds (for the infrastructure and implementation costs required to activate a contract) as we purchase your monthly contracted payment stream.

You then retain the margin-rich service portion of the monthly contracted payment stream over the term of the contract.

You stay in control of client billing and communications over the term of the contract.

Meet Your Clients’ Requirements As They Migrate to XaaS

Our solution is not a loan or a lease. The client’s payments can be treated as an operating expense.

Our solution supports contracts containing service performance conditions that clients are looking for.

Clients obtain the bundled solution they desire and avoid the confusion of multiple billing parties.

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