Investment business, directed on project funding is one of the most complex and cost-intensive. It requires substantive knowledge and practical experience in a wide variety of areas. In case with project funding the aim of investment companies or banks is targeted loan financing and building of conducive and comfortable environment in business.
At the annual loan interest rate of 14-16 % and over with condition of hard deposit it is virtually impossible for development of projects in start-up stage or initially low cost-effective. Not every entrepreneur will go for such a risk. This tough filter leaves overboard many socially important, innovative, infrastructure and startup projects, the recoupment of which is calculated for 3-5 years and more. There are overwhelming majority of such projects and many of them deserve attention despite the higher risk in comparison with ongoing projects, which use traditional credit resources.
A project financier - is an investor who is not a specialist exactly in this type of business, but who is experienced in business financial indicators and the ways to achieve them. He is not involved in current management, however he is rigorously monitoring the financial indicators and their prompt achievement. He is obliged to check the management team more thoroughly for appreciating them to generate money flow.
This type of funding has an undeniable advantage compared to classic bank lending for example:
- the financing term is rather long, 3-20 years that allows to expose and rectify possible failures in marketing or sale strategies, product selection, expansion of productive capacity, etc;
- free of monthly interest payment that considerably improves the level of the project liquidity;
- free of deposit that affords to use non-pledged assets for other purposes;
- attraction of a foreign investor-partner that gives prospects for entry to other markets along with a potential opportunity for selling the whole project to a larger strategical investor at higher price while leaving the project.
The funding proposed is significantly different from other kinds of project funding and has undeniable benefits, such as follows:
- An applicant for funding should have from 20 to 30 percent of own capital, but not less than 20 000 - 30 000 dollars with minimum project amount of 70 000 dollars which should be kept on the applicant's account as a refundable deposit under permanent monitoring of the account holder.
- A prompt consideration within one week, and verification of the applicant's documents according to the list of our requirements.
- A minimum set of documents for submission.
- Free of any advance service payment - only after the first tranche (all the technical costs are payed by an applicant).
- An individual approach to a fair funding applicant, directed on favorable decision for project funding.
- The applicant company, payment details and address:
- The name of director (the name and position should be fully indicated):
- Telephone number:
- Requested funding amount, field and name of the project:
- Approximate price in dollars and terms:
- Location of the objects:
- Form of provision:
- Business plan:
- Additional information: