GPU loans for neoclouds and AI startups
Loans for GPU server purchases under $20M, from our lending partners. Meet the criteria and you get a term sheet.
What a GPU loan term sheet looks like
- Loan amount
- 50-80% of equipment cost, depending on your credit and your offtake. You fund the rest as equity.
- Down payment
- Around 20-30% at close.
- Term
- Usually your offtake length. Expect 2-3 years as a new operator.
- Amortization
- Straight-line over the term, ideally prepayable with no penalty.
- Interest rate
- 7-10% with an investment-grade offtaker, 10-12% with a strong corporate offtaker, 12-15% with weak or no offtake.
- Fee
- About 1-3% of the loan amount, at closing.
- Security
- A first lien on the project entity’s GPUs and networking gear, a pledge of its equity, and the offtake contract.
- Debt service reserve
- Often about 3 months of payments, funded at closing.
- Covenants
- A minimum debt service coverage ratio, commonly 1.15-1.25x.
- Recourse
- Often only to the project entity, with a limited guaranty for fraud and similar acts.
- Diligence
- Around 30 days to close.
The full list, with leases and mezzanine: GPU Financing 101
What lenders ask for
Have every detail ready. The more detailed, the more real and credible you seem.
- Corporate
- Formation documents, authorizations, tax forms, and any permits.
- Financials
- Balance sheet, profit and loss, and a project model. Audited if you can.
- Offtake
- The signed offtake agreement or LOI: term, volume, and rate.
- Equipment
- The bill of materials and the OEM or reseller quote.
- Colocation
- The colo quote: power, cooling, space, and rate.
- Proof of funds
- Bank statements showing your equity and cash on hand.
Meet the criteria. Get a term sheet.
Funding source
Cash or dedicated customers (offtake)
30%+ of equipment cost
Cash on hand, from offtaker downpayment or investors. Without offtake: 50% in, and 150% of the cost in funding.
Colo quote
A colocation quote from a data center facility.
Under $20M GPU order
Purchase quote from OEM or reseller in hand.
Missing one? Contact us anyway. We can often help you close the gap.
No negotiations. That’s why it’s fast.
Step 1 · Two minutes
Check eligibility
Tell us about the cluster, the customer, and your cash.
Step 2 · One checklist
Send the evidence
Offtake LOI if you have one, hardware and colocation quotes, proof of cash.
Step 3 · Days, not months
Get your term sheet
Market rates and standard terms. Sign, and the lender moves to close.
Term sheets come from the program’s lending partners. Every credit decision is theirs.
Loans vs. leases
A finance lease ($1-buyout, or lease-to-own) is economically a loan: you make payments and own the equipment at the end. An operating lease (or FMV lease) has a lower down payment and lower monthly payments, and the lessor keeps the equipment. At term-end you return it, extend at a lower rate, or buy it at fair market value.
The first question is how much equity you have right now. If you have enough, take the loan; it’s the cheapest way to own the equipment. If you can’t get 50% equity, an operating lease may be the only option. The second question is whether you even want the equipment when the term ends.
Payments too tight? Ask for a balloon.
A lot of GPU loans stall because a three-year amortization makes the monthly payments too tight against the offtake. Ask for a balloon: pay down part of the loan over the term and leave one larger payment at maturity. Same term, lower monthly payment.
Most lenders reject it the first time, since a balloon leaves them guessing at the hardware’s value. A residual value insurance indication lets them size it with an insured floor in mind. Whether that is enough is the lender’s decision.
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 loan questions
- Is there a prepayment penalty?
- Sometimes; it depends on what you negotiate. Ask for open prepayment so you can pay the loan down early without a fee.
- Is the interest rate fixed or floating?
- For smaller deals it is usually fixed. Sometimes it is floating at SOFR plus a spread.
- Do I own the equipment at the end?
- Yes, free and clear once the loan is repaid. The cost to own is the upfront equity plus the scheduled payments.
- Who provides the financing?
- Financing comes from American Compute’s lending partners. Every credit decision is theirs. American Compute is not a lender.
- How fast is it?
- Days, not months. The criteria are fixed and the documents are standard, so once your paperwork is in there is nothing left to negotiate.
- My deal is bigger, smaller, or doesn’t fit the criteria.
- Apply anyway. We arrange bespoke GPU loans and leases outside the program, and we’ll tell you what’s missing. Program minimum is $500K, or $2.5M for New York borrowers.