What GPU lenders ask for
Four things decide whether you get a term sheet: a signed customer, your own cash, a hardware quote and a site with power.
What good looks like
Lenders size a GPU loan to the contract that repays it and the cash that sits ahead of them. The hardware and the site decide whether the servers go live on time.
- A signed customer
- A take-or-pay contract at least as long as the loan (2-3 years, ideally 3 or more), with a customer that can pay, 10-30% paid up front or backed by a letter of credit, guarantee or escrow, and assignable to the lender.Weakens it: an LOI only, a customer still negotiating, or another neocloud reselling your capacity.
- Your own cash in
- 30% or more of the equipment cost, from investors or the customer's down payment, on a bank statement. With no customer: 50% in, and 1.5x the cost in company funding.Weakens it: under 20% in.
- A hardware quote
- The OEM or reseller quote or bill of materials (GPU type, node count, networking, new or refurbished), a ship date in writing, and who racks and runs it.Weakens it: a budget estimate with no vendor, or no delivery date.
- A site with power
- A signed colocation agreement or a quote, power and cooling confirmed for these GPUs, and a lien waiver so the colo's lien doesn't compete with the lender's.Weakens it: no colocation or power secured.
What sinks a deal
Any one of these caps what lenders will do, however strong the rest of the deal.
| If you have | Best case tier | The fix |
|---|---|---|
| A missed loan or lease payment, or a lien dispute, in the last two years | AC-5 Speculative | Cure it, and explain it in writing before a lender finds it. |
| A customer that hasn't signed anything yet | AC-5 Speculative | Get at least a signed LOI. The application can't be submitted before that. |
| No customer, and under 50% cash in or under 1.5x the cost in company funding | AC-5 Speculative | Sign a customer, or bring 50% in and 1.5x the cost in funding. |
| Only an LOI or term sheet from your customer | AC-4 Weak | Turn the LOI into a signed take-or-pay contract. |
| No customer, with 50%+ cash in and 1.5x+ funding | AC-4 Weak | Financeable as an equity-heavy deal. A signed customer moves it up. |
| A contract with a broker, not back-to-back with the end customer | AC-4 Weak | Sign direct with the end customer, or get back-to-back terms from the broker. |
| A contract that doesn't cover the loan payment after data center costs | AC-4 Weak | A higher price, a longer contract, more cash in, or a smaller loan. |
| No colocation or power secured | AC-4 Weak | Sign the colocation agreement, with power confirmed for these GPUs. |
| No property insurance quoted or bound | AC-3 Acceptable | Bind all-risk property insurance with the lender as loss payee. |
| Under 20% of the cost in cash | AC-3 Acceptable | Get to 30%: from investors, or from the customer as a down payment. |
| A weak customer, with under 10% of the contract paid up front | AC-3 Acceptable | Get 20% of the contract paid up front, or a letter of credit. |
The knockouts in the Neocloud Credit Score. AC-3 Acceptable: Financeable by fewer lenders, with more equity and more protection. AC-4 Weak: Debt is possible only with heavy equity or credit support. Fix the gaps first. AC-5 Speculative: Not financeable with senior debt as it stands. Indicative; every credit decision is the lender's.
The data room
One folder, ready before the first lender call. Missing a piece? Say so.
- The four asks
- The customer contract (MSA and order form) or LOI, a bank statement showing your cash, the hardware quote and delivery schedule, and the colocation agreement or quote with the lien waiver.
- Company
- Formation documents for the borrowing entity, cap table, funding history, and who covers engineering, operations and finance.
- Financials
- Statements, tax returns, revenue to date, and a schedule of existing debt, liens and leases. The customer’s financials too, if you can get them.
- Insurance
- A property insurance quote or binder for the servers, transit included, with the lender as loss payee.
- Track record
- Prior deployments: GPUs, location, dates, uptime. A first cluster is fine; say so.
- The request
- Amount, borrowing entity, use of proceeds, target close, recourse offered, and who you have already spoken to.
The Financing Qualifying checklist
Everything on this page on one sheet, for the team member gathering the documents. The same list every applicant gets.
Free PDF, 1 page
Two minutes to find out if you qualify.
- Your financing application link, straight away
- A 20-minute onboarding call
- A straight answer if it’s not a fit for the program
Prefer email? hello@amcompute.com
GPU financing requirement questions
- Is a signed LOI enough to get financed?
- It is enough to get a term sheet. Lenders fund against the binding contract, so convert the LOI into a signed take-or-pay agreement once the term sheet is in hand.
- Do I need audited financials?
- Audited or CPA-reviewed statements help most. Without them, send tax returns, bank statements and revenue to date. Many lessors want 2 years in business and audited financials.
- Can a first-time operator get GPU financing?
- Yes. Say it is your first cluster. Lenders then lean harder on the customer contract, your cash in, and the team that will run it.