Modular Building Financing: The Complete Solution

July 12, 2018

The financing landscape for portable structures is vast, and strategies vary widely from vendor to vendor. Many in the space act as a de facto leasing company, while others sell modular building financing to a third-party partner to preserve cash, particularly when deal sizes reach high levels. Still, others avoid large and complex deals altogether, unable or unwilling to meet the high capital requirements of these projects.

But modular building manufacturers that want to offer their customers financing options don’t have to be constrained by deal size and complexity. There are options available to vendors that enable flexible modular building financing, opening access to bigger deals without the headaches and high barriers to entry. These solutions could also net the vendor additional revenue streams that they would not have realized with traditional, do-it-yourself financing.

IFS’ “Best of Both Worlds” approach to vendor financing makes it possible for
vendors to preserve bank lines, receive 100% upfront funding and share in the upside of
the lease 50/50. Here’s how:

Enables Large, Complex Deals Via 100% Upfront Funding

Vendors are fully funded immediately upon acceptance of a deal. This means they preserve capital to apply in other areas of the business and are no longer constrained by deal size.

Creates Additional Upside By Sharing Future Rent Revenue

Once IFS’ original investment has been recovered, it shares all future revenue from rent or sale of the modular structure with the vendor. This creates a partnership in the truest sense of the word and provides an additional revenue stream for the vendor, risk-free.

Progress Payment Capability

IFS can step in to fund all progress payments for the client during the time prior to acceptance.

Eliminates Credit Risk

Because IFS carries all of the debt, vendors conserve their credit line and completely mitigate all credit risk.

Relieves Cash Flow Challenges

In a traditional scenario, vendors must weather a large cash outlay, then slowly regain capital over the term of the deal. With a more modern approach, they can completely eliminate this cash crunch, enjoying untethered growth.

Includes Site Work

In addition to freeing-up capital and providing increased upside, IFS works to relieve minor headaches that often accompany modular building financing programs. Providing an end-to-end solution, IFS handles delivery, installation, ongoing maintenance including plumbing and electrical, and removal. This relieves strain on the vendor’s staff while simultaneously pleasing the clients who are actually utilizing the modular structure.

Supports Commercial and Federal Opportunities

IFS can partner with you on all commercial and federal financing opportunities.

To hear it from a customer’s point of view, working with IFS can be a very smart business decision:

“We were awarded a large school district project and were debating on funding this ourselves or using a competitor of IFS. Before we made our decision, IFS called us and presented their unique revenue sharing program. We chose to partner with IFS and couldn’t be happier. We were funded the entire project upfront and are looking forward to sharing in the upside in the future. The best of both worlds!”

The bottom line is that historically, modular building companies have been constrained by capital requirements, ongoing cash flow challenges, and operational complexities that when added together, deter them from large and complex deals. Offering a strategic field of view to encompass these types of engagements not only fuels faster, smarter growth initiatives, but enables a healthy balance sheet and a renewed focus on creating positive and long-lasting client relationships.

Modular Building Financing: The Complete Solution