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. Investopedia Says:
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. Related Terms:
Collateral
Debt
Default
Limited Recourse Debt
Non-Recourse Debt
Project Finance |