What are the risks involved in asset leasing, and how does Tap Invest mitigate these risks?

This type of investment asset class has the following risks associated with it:

1. Asset Risk, i.e. the asset is damaged, stolen or becomes redundant 
2. Default Risk, i.e. the company is unable to service the payment or unable to pay the rental amount due to the Investor 
3. Payment Risk, i.e. delayed payment to the Investor

The following are steps that Tap Invest takes to control and/or reduce the aforementioned risks:

1. Mitigate Asset Risk - The liability of taking good care of the asset transfers to the Company / Lessee via the licensing contract. If something happens to the asset, the Company / Lessee is responsible, not the Investor / Lessor. 
   
   
2. Mitigate Default Risk - Before a new deal goes live on the Tap Invest platform, Tap Invest due diligence team conducts a thorough risk analysis and due diligence on the Company to reduce default risk. In case a default does happen, because the asset is owned by the Investor/Lessor, Tap Invest acts on behalf of the Investors and repossesses the assets from the Company/Lessee through repossession agencies. Post repossession, the asset is liquidated by the agency.
   
   
3. Mitigate Payment Risk - eNACH mandates are set up in advance, equivalent to 100% of amounts to be repaid in order to ensure [not assure] timely and hassle-free repayments. Date-less security checks are also collected from the Company equivalent to 100% of the amount to be repaid.

For any additional queries, feel free to e-mail us at the following e-mail address: support@tapinvest.in