What is "technology Systems Integration Financing"

Media Technology systems integration ( SI ) projects involved the assimilation and/or convergence of a number of different components to create a unified or inter-relationship technology system. Most projects combine equipment, technology, systems, wiring or cabling, software, labor, installation, training, shipping, delivery, set up, warranty, and sometimes ongoing services or support by a service provider. SI technology projects are common to television studios, corporate media centers, business conference rooms or training rooms, school classrooms, churches, hospitals, cable television networks, telephone companies, sports stadiums and arenas, live theater and concert halls, convention centers and other venues where media technology, sound reinforcement, digital display, communications gear and integrated. Usually a contractor or systems integrator is hired to coordinate and manage the installation of equipment from a number of different manufacturers. The SI is skilled at such installation projects and is often an authorized dealer for a number of different manufacturers. A systems integrator may specialize in just one area such as sound, or lighting, or digital media display or he may facilitate a project encompassing all aspects of these technologies.

The financing of media systems integraton projects differs from traditional equipment finance in two distinct ways. One is that the lender is financing a much higher percentage of soft costs or non recoverable costs such as labor, installation or warranty. Another difference is that lenders financing systems integration projects usually must provide "interim" financing during the installation period. In some cases, a TV studio, church project, school project etc the installation may take several months or longer. The lender needs to be able to provide interim financing for the term of the installation period. Over the installation period the lender usually advances funds to the systems integrator on a 30-30-40 structure with 30% of the project funded upon the order, 30% funded upon delivery of the equipment and systems and 40% up the completionof the project.