A new option for financing the purchase of productive assets.

Advantages

Borrower (manufacturer)

  • Various payoff possibilities
  • No prospectus needed
  • Low cost
  • No withholding tax
  • Feasible in almost any amount
  • Efficient and flexible structuring

Investor

  • Various payoff possibilities
  • Less credit risk (due to pledge on the equipment acquired)
  • No withholding tax
  • Transferable security (CH-ISIN)

How that works

Are you an entrepreneur who would like to finance the purchase of some new production equipment? In addition to shopping for the hardware you need, you are probably also trying to find an attractive financing option – one that would allow you to avoid the costs and other disadvantages of taking out a loan. GenTwo has a solution: a “Certificate of Things”.

Take a chocolate manufacturer as an example: the owners want to acquire a new packaging machine for CHF 3 million. Instead of a
conventional solution requiring the company to take on debt, GenTwo can custom design an investment certificate that compensates investors in the form of a variable coupon for each unit of chocolate packaged by the new machine. We process the transaction via a certificate established by our customized issuance solution, which is quick and inexpensive to set up. The certificate is issued as a fully-fledged Swiss security – with its own Swiss ISIN – which is then accessible to investors (like any other security) via their bank.

This alternative financing method means that the chocolate producer becomes something more than a loan applicant: it is now providing an attractive service by giving investors a stake in the machine’s output. The GenTwo-designed certificate corresponds to a direct investment in its chocolate production.

We call this novel way to finance the acquisition of an asset a “Certificate of Things”. Like the “Internet of Things”, which makes use of information generated by physical devices, our solution also uses information – in our example the manufacturer’s capacity utilization – turned into an investment.

The benefit to you as a production company is clear: By applying this GenTwo solution to a wide range of financing situations facing your clients, you are entering new fields of business and explicitly creating added value for them.

And you can do all this flexibly, quickly, and inexpensively.

 

Setup certificate of things

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