COVID-19 has dealt a significant blow to the revenues of many businesses. In EMEA, governments have moved to provide enterprises financial aid, but this support is not sustainable in the long term. Although interest rates across the continent remain low, the ability of some corporations to service record debt levels is on a knife-edge. Others, by contrast, are taking advantage of the abundance of debt available.
During the market uncertainty of the pandemic, structured finance solutions such as credit tenant leases (CTL) and asset leasing (AL) have provided businesses an attractive method to secure financing. These enable tenants to secure debt against their credit rating rather than against physical real estate, the model seen in more traditional structures. In our ‘CRE - Our industry today, tomorrow & beyond’ report I share how alternative lease structures can strengthen corporate balance-sheets.