Publication: Microleasing : Overcoming Equipment Financing Barriers
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2008-12
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2012-08-13
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As their businesses grow, many microbusiness owners would like to purchase new machinery from a microfinance institution (MFI), since such equipment can hold the key to increasing production. However, MFIs are often not able or willing to lend for longer periods of time, with grace periods that long term lending for machinery requires. Long term financing from other sources is usually not feasible, since banks and leasing companies require collateral, a well-documented credit history and financial statements. For many microbusinesses, leasing could provide an effective alternative to taking on more debt. This note reviews financial and operational leasing, describes two microleasing experiences in Latin America, identifies risks, and provides recommendations for launching a micro-leasing program.
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“Goldberg, Mike. 2008. Microleasing : Overcoming Equipment Financing Barriers. en breve; No. 140. © World Bank. http://hdl.handle.net/10986/10265 License: CC BY 3.0 IGO.”
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