Credit Quality Will Rule
Managing credit quality drives down costs; increases competiveness; and reduces risk to all parties
Credit quality is much more than just a good credit score. An can achieve far better results from a pool of sub-700 credit scores than a pool of higher scores
with each lessee who thoroughly understands details and importance of transaction before a lease is signed
– Leasing collateral generates its own cash flow to support the lease payment – pay LC and reap energy profit or pay Utility more!
Long term investment vs. short term savings decision
Lease allows effective fix of electric rates for 15-20 years but might not always be lower than offset utility cost in year 1
Avoid investing $50,000 on a roof where the primary motivation is to save $10-20 on next month’s utility costs