RISKS vs. MITIGATION MEASURES: Leasing

Project Developers’ Perspective

RISKS

• The Lessor may have conditions concerning turnover etc. making it impossible to get access to this form of financing.
• The Lessor can reclaim ownership if payments are not made in time.
• A lot of specific knowledge is required to monitor the project and repayments as they are tied to the leased object or project.
• In the late project development phases, traditional bank loans might be possible at lower costs.

MITIGATION MEASURES

• Leasing can be understood as a financial mitigation measure in itself. It reduces the risk for the investor, because the asset is used as collateral and can be reclaimed when a business is not paying.

Community Investors’ Perspective

RISKS

• n.a.

MITIGATION MEASURES

• n.a.