Project Financing
funding of long-term projects
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 most often used to fund large-scale industrial or infrastructure projects that involve a construction phase, such as building a transportation system addition or a power generation facility. Projects like these require significant upfront capital, and they do not generate a return until the construction phase is complete.
Why Project Financing?
Access to Capital
Project funding provides access to capital that can be used for various purposes, such as starting a new business, expanding an existing one, or funding research and development.
Increased Credibility
It can increase the credibility of a venture, making it easier to attract additional funding and customers.
Opportunity for Growth
Project funding can provide an opportunity for growth by financing new ventures, expanding into new markets, or developing new products or services.