Why do financing projects have limited recourse and unlimited recourse?

1. Why do financing projects have limited recourse and unlimited recourse?

The solvency of financing projects is often different from the risks involved. Limited recourse is to reduce the debt pressure of enterprises as much as possible, and unlimited recourse is a temptation for enterprises to improve the level and quality of financing.

Second, the repayment source of the non-recourse project loan is ()

B

3. What does non-recourse financing mean?

Hello, classmate, I'm glad to answer your question!

Non-recourse financing, also known as pure project financing, refers to the project financing in which the lender has no recourse to the project sponsor. It first appeared in the United States in the 1920s, and was mainly used to develop oil fields in Texas. Because the equity investment used by the project developer to support the loan request was very limited at that time, banks began to carefully consider the value of resource storage and the credit support mountain provided by the agreement of large refineries to buy crude oil, creating a non-recourse project financing method.

I hope the answer from Gao Dun Online School can help you solve the problem. More securities business questions are welcome to be submitted to Gao Dun enterprises.

Gao Dun wishes you a happy life!

Fourth, the concept of non-recourse project loan.

You can get a loan even if you don't track it.