Recovery Floor (20%+), Residual Value Insurance
Recovery, remarketing coordination, and residual value insurance for a minimum resale value.
A 3-year loan on a 2-year offtake leaves months 25 to 36 naked.
Illustrative.
How it works
Residual value insurance puts an insured floor under what the equipment will be worth at the trigger dates set in the policy. If it sells for less than the floor, the issuing insurer pays the shortfall. For example, if GPUs insured at a 20% floor sell for 5%, the policy pays the 15% shortfall.
It can cover the whole rack, not just the GPUs. Through the term we work alongside your asset management team on maintenance standards, returns, and remarketing, so you do not need to add headcount to finance GPUs.
Discuss a transaction
Send us the equipment list and the structure you have in mind. We will come back with an indication and the questions we would need answered.
Prefer email? hello@amcompute.com
Residual value questions
- Real risk transfer?
- Yes. It is an insurance policy issued by an insurer, not an informal promise.
- How much does it cost? What residuals?
- It depends on the deal. Send us the equipment list and the residual ask; we'll come back with an indication.