Project Developers’ Perspective
- 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.
- 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
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