Project finance is the funding (financing) of long-term infrastructure, establish any business or public service project and develop an active project using a non-recourse or limited recourse financial structure.
The debt and equity used to finance the project are paid back from the cash flow generated by the project.
Project financing is a loan structure that relies primarily on the project's cash flow for repayment, with the project's assets, rights, and interests held as secondary collateral.
Project finance is especially attractive to the private sector because companies can fund major projects off-balance sheet and it would be for either a once-off need or for regular use in their business.
In project finance service, there are a variety of options for cooperation with the applicant, about which we will be as flexible as possible and will carefully consider each proposal, but the following is a summary of the main (not all) options available:
Commercial property finance
Commercial property finance is a good option if you’re looking to purchase land or property for your business. Imagine what you could do with a new office, shop, branch, entire apartment block or any type of property needed to establish or develop a business.
A commercial property finance can really help your business expand and grow. After all, a new property means more space for a team to grow, more facilities, new opportunities in the target market and increase the equity value of a company.
There are different ways to structure and pay back a commercial property finance. You can choose from fixed and variable interest rates, interest-only repayments, or principal + interest repayments.
Business term loans
This service can be used to invest in a wide range of commercial assets such as equipment, vehicles and machinery or even as a typical cash flow of a company with no restrictions on its type of spending.
It is only necessary to secure the loan amount in one of the possible ways and to prove that your business will be able to repay the amount.
In our business term loan service you can choose to have a fixed or variable interest rate, and a set loan term that is comfortable for you.
A term loan allows a business to make consistent repayments over time, which is especially useful if you like the idea of knowing exactly when your next payment is due.
Line of credit
A line of credit is an arrangement made with your financer in which you can access funds (up until a set agreed amount) if and when you need to. Though the cash is accessible for you at any time, you’ll only pay interest on the money you use.
This can be an attractive option as it means you have funds to fall back on, but you only pay for what you use. In other words, consider the peace of mind free of charge.
The accessibility and flexibility can be a huge plus, because every business owner knows you just can’t predict everything. Sometimes you have to go with the flow.
In our Line of credit service you can choose to have a fixed or variable interest rate.
It’s a very attractive service to fund the purchase of motor vehicles and other equipment utilized for business purposes.
Equipment finance describes a loan or lease that is used to obtain business equipment, which can be any tangible asset other than real estate. Equipment financing may be through obtaining a loan to purchase equipment or by leasing equipment.
The most common project finance construction contract is the engineering, procurement and construction (EPC) contract.
An EPC contract generally provides for the obligation of the contractor to build and deliver the project facilities on a fixed price, turnkey basis, i.e., at a certain pre-determined fixed price, by a certain date, in accordance with certain specifications, and with certain performance warranties.
The EPC contract is quite complicated in terms of legal issue, therefore the project company and the EPC contractor need sufficient experience and knowledge of the nature of project to avoid their faults and minimize the risks during contract execution.
BOT / BOOT
Build–Operate–Transfer (BOT) or Build–Own–Operate–Transfer (BOOT) is a form of project delivery method, usually for large-scale infrastructure projects, wherein a private entity receives a concession from the public sector (or the private sector on rare occasions) to finance, design, construct, own, and operate a facility stated in the concession contract. This enables the project proponent to recover its investment, operating and maintenance expenses in the project.
The term of a BOT agreement is usually long enough for the financer (investor) to recoup the investment costs of constructing the infrastructure, by charging a tariff or user fee during the period it is operating the infrastructure. (e.g. an airport, port, power plant, water supply system etc.)
If any of these services are of interest to you or you have any other ideas for making a project finance agreement, get in touch with us through contact us section in the main menu.
We look forward to hearing from you and being able to help make your dreams come true.