Monitoring & Backup Servicing
Monthly oversight of the offtaker and its payments through the term, with a servicer of last resort in place.
What we monitor
In AI infrastructure financing, the offtaker's credit is sometimes more important than the borrower's. We help monitor the offtaker and track financing payments back to you.
The offtaker
Monitoring the offtaker
- Financials and ability to pay for both offtaker and borrower, reviewed monthly.
- Every payment tracked as it comes in.
The payment
Routed straight to you
- A deposit account control agreement (DACA) puts the offtaker's payments in an account you control.
- A payment split sends debt service to you before the remainder goes to the operator.
The lender or lessor
Paid first, reported monthly
- Debt service arrives without depending on the operator to forward it.
- A monthly report on the offtaker, the payments, and the split.
If the operator fails
Backup servicing
A named servicer of last resort, ready to collect and administer the loan or lease. Stepping into the offtake contract and collecting from the offtaker directly is available as an option.
Monitoring is the early warning. If the offtaker walks, Offtake Interruption Cover is the backstop.
How it works
For AI infrastructure, neocloud borrowers are often tough credit, and the financing depends on an underlying offtake contract that creates stable cash flow for the project. That means debt service and lease payments are paid out of what the offtaker pays.
We continuously validate that the offtaker can pay. We review the offtaker financials and ability to pay, track each payment as it comes in, and report monthly to lenders, lessors, and their investors.
Where the structure allows, a deposit account control agreement and a payment split send the debt service portion of each offtaker payment straight to the lender or lessor, so it never depends on the operator forwarding it. We track that the payments land and that the split pays you first; we administer it for you.
Backup servicing puts a named servicer of last resort in place, ready to collect and administer the loan or lease if the primary servicer fails. Stepping into the offtake contract and collecting from the offtaker directly is available as an option.
Discuss a transaction
Send us the offtake contract and the structure you have in mind. We will come back with an indication and the questions we would need answered.
Monitoring questions
- Who do you serve?
- Private credit and equipment finance.
- What do you monitor?
- The offtaker first: financials, ability to pay, and every payment as it comes in. Then the borrower and the equipment: payments, covenants, utilization, and condition.
- What is a DACA?
- A deposit account control agreement. The offtaker pays into an account the lender or lessor controls, and a payment split sends debt service to you before the remainder goes to the operator.
- What is backup servicing?
- A named servicer of last resort that steps in to collect and administer the loan or lease if the primary servicer fails.
- Can the backup servicer collect from the offtaker directly?
- Optionally. Where the financing provides for it, the servicer of last resort steps into the offtake contract and collects from the offtaker directly.
- How often do you report?
- Monthly.
- Is this insurance?
- No. Monitoring and backup servicing are services provided by American Compute, Inc.
Start with the collateral: see Appraisals & Diligence.