Non-Recourse Finance


DEFINITION of 'Non-Recourse Finance'

A loan where the lending bank is only entitled to repayment from the profits of the project the loan is funding, not from other assets of the borrower.

BREAKING DOWN 'Non-Recourse Finance'

These types of projects are characterized by high capital expenditures, long loan periods, and uncertain revenue streams. Analyzing them requires a sound knowledge of the underlying technical domain as well as financial modeling skills.

  1. Assignment Of Accounts Receivable

    A lending agreement, often long term, between a borrowing company ...
  2. Without Recourse

    This phrase has several meanings. In a general sense, when the ...
  3. Non-Recourse Expense

    An accounting term that sometimes refers to the cost of absorbing ...
  4. Collateral

    Property or other assets that a borrower offers a lender to secure ...
  5. Debt

    An amount of money borrowed by one party from another. Many corporations/individuals ...
  6. Default

    1. The failure to promptly pay interest or principal when due. ...
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