Faqs

C-Corporations: The double taxation of C-corporations creates an additional level of tax as C-corps pay capital gains on the sale of the assets and then shareholders have to pay dividend tax on [...]

Leeward’s business evaluation is similar to a traditional credit process and also includes an evaluation of the mission criticality and fair market value of the company’s technology and/or data. [...]

Asset-light businesses have a higher probability of being a fit for Leeward’s S2S but there are certain asset-heavy businesses that may also be a fit. Specifically, if the management, tracking or [...]

An S2S can coexist alongside a third-party asset-based loan but if the transaction requires a cash flow loan, Leeward will generally provide the cash flow facility as well offering the customer a [...]

S2S customers must value Leeward’s S2S attributes more than the higher pre-tax cash flow offered by modestly amortizing term debt or equity. Leeward’s S2S solution offers non-dilutive, [...]

Upon termination or maturity of the S2S, the customer has the right to repurchase the assets on commercially reasonable terms. The company can also extend the S2S for up to 15 years for a [...]

The customer has the right to terminate the S2S after an agreed upon period, generally two years. The termination fee is predetermined and is an operating expense like the monthly S2S fees.

S2S customers will pay capital gain tax on the initial sale of the assets and all S2S fees are operating expense.

The S2S consumes the same or more cash on a pre-tax basis compared to traditional financing solutions but consumes less cash on an after-tax basis.

An S2S agreement is generally between three and six years but can go longer in certain circumstances. The S2S fee has a fixed and variable component allowing fees to adjust based on the company’s [...]