Attached you find one of the first reports on financing the circular economy, written with the FinanCE Working Group, where we have provided an in-depth case study of Bundles, which lays out the financing challenges we found.
- As the product is not sold, the payback period on the product is longer
- thus higher (upfront) capital requirements
- no guaranteed residual value (at this moment they have though)
- high transaction costs (variable transactions, contract management, receivable management, credit checks, etc)