Energy Project Financing : Resources and Strategies for Success

Financing Energy Management Projects 27

Figure 2-10. Classification for a True Lease.

Does the lessor have:

≥ 20% investment in asset at all times?

≥20% residual value?

lease period ≤ 80% asset’s life?

Does lessee have:

a loan to the lessor?

a bargain purchase option?

Capital Lease

True Lease

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yes

no

yes

yes

yes

no

no

no

no