Bank Financing of the MASCO Project

Circular building materials need upfront capital, but can a bank actually lend against them? Long use periods, uncertain residual values and limited secondary markets make credit hard to assess. And without collateral a bank can claim, financing falls back on the borrower's balance sheet alone.

Triodos Bank tested two MASCO structures against its credit criteria. The circular discount model isn't bankable under current market conditions. The circular leasing model can be: with 50% bank debt and 50% subordinated investor loans, the financial model shows enough repayment capacity over four years.