Challenges

More on the challenges Bundles faces

From the Knowledge Hub case study:

"Multiple challenges arose in the case of Bundles, the first being that the washing machines needed to be financed with a longer payback period, which put pressure on the company’s cash flows.

Secondly, Bundles’ balance sheet continues to grow due to the fact that they maintain ownership of the washing machines throughout their entire life-cycle creating a capital demand.

Lastly, there is currently no company which can remanufacture or refurbish the used washing machines making it very difficult to incorporate residual value into the machine’s lease contracts."

https://circle-lab.com/knowledge-hub/subscription-based-payment-use-sen…

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