Microleasing : Overcoming Equipment Financing Barriers

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...

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Main Author:	Goldberg, Mike
Format:	Brief
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ASSET VALUE BALANCE SHEET BALLOON PAYMENTS BANKING REGULATIONS BANKS CAPITAL NEEDS CASH FLOW CASH PAYMENT COLLATERAL COMPANY CONSUMER CONSUMER LOANS CORPORATION CREDIT HISTORY CREDIT PRODUCTS DEBT DEFAULTED LOAN DEPOSIT DEPRECIATION DEVELOPMENT BANK DISTANCE LEARNING DOWN PAYMENTS ECONOMIC DOWNTURN ECONOMIC MANAGEMENT EQUIPMENT EQUIPMENT LOAN EXPOSURE FARMERS FINANCE CORPORATION FINANCIAL DISADVANTAGES FINANCIAL INSTITUTIONS FINANCIAL LOAN FINANCIAL PRODUCTS FINANCIAL SERVICES FINANCIAL STATEMENTS FINANCING INSTRUMENT FIRMS FIXED RATE GOVERNMENT POLICIES GRACE PERIODS HOLDING HOUSING FINANCE INFLATION INSTRUMENT INSURANCE INSURANCE POLICIES INTEREST RATE INTEREST RATE CEILINGS INTERNATIONAL DEVELOPMENT INTERNATIONAL FINANCE LEASING LEGAL DISPUTES LEGAL POSITION LENDER LETTERS OF CREDIT LIFE INSURANCE LOAN LOAN PORTFOLIO LOAN PORTFOLIOS LONG TERM FINANCING MAINTENANCE COSTS MARKET DISTORTIONS MFI MFIS MICRO BUSINESS MICROFINANCE MICROFINANCE INSTITUTION MICROFINANCE INSTITUTIONS MONTHLY PAYMENT NATURAL DISASTER OPERATIONAL COSTS REGULAR PAYMENT REGULATORY CONDITIONS REGULATORY FRAMEWORK RENTS REPAYMENT REPOS REPOSSESSION RETURN RETURNS RISK MITIGATION SECONDARY MARKET SENIOR SHOPS SMALL ENTERPRISES SOLVENCY SUPPLIER TAX TAX ADVANTAGE TAX ADVANTAGES TAX BURDEN TAX CODE TAX CODES TAX LAWS TAX SAVING TAX SYSTEM TAXABLE INCOME TRUST FUND WAREHOUSE WORKING CAPITAL
Online Access:	http://documents.worldbank.org/curated/en/2008/12/10277994/microleasing-overcoming-equipment-financing-barriers http://hdl.handle.net/10986/10265

id	okr-10986-10265
recordtype	oai_dc
spelling	okr-10986-102652021-04-23T14:02:49Z Microleasing : Overcoming Equipment Financing Barriers Goldberg, Mike ASSET VALUE BALANCE SHEET BALLOON PAYMENTS BANKING REGULATIONS BANKS CAPITAL NEEDS CASH FLOW CASH PAYMENT COLLATERAL COMPANY CONSUMER CONSUMER LOANS CORPORATION CREDIT HISTORY CREDIT PRODUCTS DEBT DEFAULTED LOAN DEPOSIT DEPRECIATION DEVELOPMENT BANK DISTANCE LEARNING DOWN PAYMENTS ECONOMIC DOWNTURN ECONOMIC MANAGEMENT EQUIPMENT EQUIPMENT LOAN EXPOSURE FARMERS FINANCE CORPORATION FINANCIAL DISADVANTAGES FINANCIAL INSTITUTIONS FINANCIAL LOAN FINANCIAL PRODUCTS FINANCIAL SERVICES FINANCIAL STATEMENTS FINANCING INSTRUMENT FIRMS FIXED RATE GOVERNMENT POLICIES GRACE PERIODS HOLDING HOUSING FINANCE INFLATION INSTRUMENT INSURANCE INSURANCE POLICIES INTEREST RATE INTEREST RATE CEILINGS INTERNATIONAL DEVELOPMENT INTERNATIONAL FINANCE LEASING LEGAL DISPUTES LEGAL POSITION LENDER LETTERS OF CREDIT LIFE INSURANCE LOAN LOAN PORTFOLIO LOAN PORTFOLIOS LONG TERM FINANCING MAINTENANCE COSTS MARKET DISTORTIONS MFI MFIS MICRO BUSINESS MICROFINANCE MICROFINANCE INSTITUTION MICROFINANCE INSTITUTIONS MONTHLY PAYMENT NATURAL DISASTER OPERATIONAL COSTS REGULAR PAYMENT REGULATORY CONDITIONS REGULATORY FRAMEWORK RENTS REPAYMENT REPOS REPOSSESSION RETURN RETURNS RISK MITIGATION SECONDARY MARKET SENIOR SHOPS SMALL ENTERPRISES SOLVENCY SUPPLIER TAX TAX ADVANTAGE TAX ADVANTAGES TAX BURDEN TAX CODE TAX CODES TAX LAWS TAX SAVING TAX SYSTEM TAXABLE INCOME TRUST FUND WAREHOUSE WORKING CAPITAL 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. 2012-08-13T10:59:26Z 2012-08-13T10:59:26Z 2008-12 http://documents.worldbank.org/curated/en/2008/12/10277994/microleasing-overcoming-equipment-financing-barriers http://hdl.handle.net/10986/10265 English en breve; No. 140 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Brief Publications & Research Latin America & Caribbean
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	ASSET VALUE BALANCE SHEET BALLOON PAYMENTS BANKING REGULATIONS BANKS CAPITAL NEEDS CASH FLOW CASH PAYMENT COLLATERAL COMPANY CONSUMER CONSUMER LOANS CORPORATION CREDIT HISTORY CREDIT PRODUCTS DEBT DEFAULTED LOAN DEPOSIT DEPRECIATION DEVELOPMENT BANK DISTANCE LEARNING DOWN PAYMENTS ECONOMIC DOWNTURN ECONOMIC MANAGEMENT EQUIPMENT EQUIPMENT LOAN EXPOSURE FARMERS FINANCE CORPORATION FINANCIAL DISADVANTAGES FINANCIAL INSTITUTIONS FINANCIAL LOAN FINANCIAL PRODUCTS FINANCIAL SERVICES FINANCIAL STATEMENTS FINANCING INSTRUMENT FIRMS FIXED RATE GOVERNMENT POLICIES GRACE PERIODS HOLDING HOUSING FINANCE INFLATION INSTRUMENT INSURANCE INSURANCE POLICIES INTEREST RATE INTEREST RATE CEILINGS INTERNATIONAL DEVELOPMENT INTERNATIONAL FINANCE LEASING LEGAL DISPUTES LEGAL POSITION LENDER LETTERS OF CREDIT LIFE INSURANCE LOAN LOAN PORTFOLIO LOAN PORTFOLIOS LONG TERM FINANCING MAINTENANCE COSTS MARKET DISTORTIONS MFI MFIS MICRO BUSINESS MICROFINANCE MICROFINANCE INSTITUTION MICROFINANCE INSTITUTIONS MONTHLY PAYMENT NATURAL DISASTER OPERATIONAL COSTS REGULAR PAYMENT REGULATORY CONDITIONS REGULATORY FRAMEWORK RENTS REPAYMENT REPOS REPOSSESSION RETURN RETURNS RISK MITIGATION SECONDARY MARKET SENIOR SHOPS SMALL ENTERPRISES SOLVENCY SUPPLIER TAX TAX ADVANTAGE TAX ADVANTAGES TAX BURDEN TAX CODE TAX CODES TAX LAWS TAX SAVING TAX SYSTEM TAXABLE INCOME TRUST FUND WAREHOUSE WORKING CAPITAL
spellingShingle	ASSET VALUE BALANCE SHEET BALLOON PAYMENTS BANKING REGULATIONS BANKS CAPITAL NEEDS CASH FLOW CASH PAYMENT COLLATERAL COMPANY CONSUMER CONSUMER LOANS CORPORATION CREDIT HISTORY CREDIT PRODUCTS DEBT DEFAULTED LOAN DEPOSIT DEPRECIATION DEVELOPMENT BANK DISTANCE LEARNING DOWN PAYMENTS ECONOMIC DOWNTURN ECONOMIC MANAGEMENT EQUIPMENT EQUIPMENT LOAN EXPOSURE FARMERS FINANCE CORPORATION FINANCIAL DISADVANTAGES FINANCIAL INSTITUTIONS FINANCIAL LOAN FINANCIAL PRODUCTS FINANCIAL SERVICES FINANCIAL STATEMENTS FINANCING INSTRUMENT FIRMS FIXED RATE GOVERNMENT POLICIES GRACE PERIODS HOLDING HOUSING FINANCE INFLATION INSTRUMENT INSURANCE INSURANCE POLICIES INTEREST RATE INTEREST RATE CEILINGS INTERNATIONAL DEVELOPMENT INTERNATIONAL FINANCE LEASING LEGAL DISPUTES LEGAL POSITION LENDER LETTERS OF CREDIT LIFE INSURANCE LOAN LOAN PORTFOLIO LOAN PORTFOLIOS LONG TERM FINANCING MAINTENANCE COSTS MARKET DISTORTIONS MFI MFIS MICRO BUSINESS MICROFINANCE MICROFINANCE INSTITUTION MICROFINANCE INSTITUTIONS MONTHLY PAYMENT NATURAL DISASTER OPERATIONAL COSTS REGULAR PAYMENT REGULATORY CONDITIONS REGULATORY FRAMEWORK RENTS REPAYMENT REPOS REPOSSESSION RETURN RETURNS RISK MITIGATION SECONDARY MARKET SENIOR SHOPS SMALL ENTERPRISES SOLVENCY SUPPLIER TAX TAX ADVANTAGE TAX ADVANTAGES TAX BURDEN TAX CODE TAX CODES TAX LAWS TAX SAVING TAX SYSTEM TAXABLE INCOME TRUST FUND WAREHOUSE WORKING CAPITAL Goldberg, Mike Microleasing : Overcoming Equipment Financing Barriers
geographic_facet	Latin America & Caribbean
relation	en breve; No. 140
description	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.
format	Publications & Research :: Brief
author	Goldberg, Mike
author_facet	Goldberg, Mike
author_sort	Goldberg, Mike
title	Microleasing : Overcoming Equipment Financing Barriers
title_short	Microleasing : Overcoming Equipment Financing Barriers
title_full	Microleasing : Overcoming Equipment Financing Barriers
title_fullStr	Microleasing : Overcoming Equipment Financing Barriers
title_full_unstemmed	Microleasing : Overcoming Equipment Financing Barriers
title_sort	microleasing : overcoming equipment financing barriers
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2008/12/10277994/microleasing-overcoming-equipment-financing-barriers http://hdl.handle.net/10986/10265
_version_	1764412459808980992

Microleasing : Overcoming Equipment Financing Barriers

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