Funding Private Projects in Europe
It is possible to apply for a grant in OECD member countries from Governments and NGO Foundations but you might discover that not all projects get covered by grants. It can be difficult to find organisations willing to help finance a project in particular; those projects that have a unique selling point that counteract current problems but comes with a high-risk approach.
Let’s say a developer needs funding, when they apply for project finance, the lender might put together a structured finance solution to suit the developer’s project requirements. But what does structured finance mean and how do they do it?
What is Structured Finance
The lender will look at the development project to determine what it’s requirements are and then structure a finance model according to the projects needs. If the borrower has been refused funding for whatever reason, this might be the best route to go down. So in other words, structured finance not only benefits the borrower but also protects the funder.
Today there are many ways to get seed funding for a business. The old traditional way was to go and ask the bank manager for a business loan. As there are problems in the economy and banks are being a lot more frugal with commercial loans, people need to look elsewhere to get the right loan to suit their business requirements.
Every project is different so it is not possible to compile an exhaustive list of project funding risk or to rank them in order of priority. What is a major funding risk for one project may be quite minor for another. One can discuss the risks that are common to most projects and possible avenues for minimizing them. However, it is helpful to categorize the risks according to the phases of the project within which they may arise: (1) the design and construction phase; (2) the operation phase; or (3) include both phases. It is useful to divide the project in this way when looking at project funding risks because the nature and the allocation of risks usually change during and between constructions.
Large Project Finance
There’s different options for project principles to raise capital for their project. Corporations can apply for large project finance from institutional investors, venture capital and boutique banks. These financial bodies can utilise bank instruments and private placement platforms to build up initial funding to start cash flow and progress with funding activities.
Since Brexit (UK exit from the EU) the worlds markets are looking very uncertain. The Pound is weak against the Dollar and Euro thus creating instability and a knock on effect to other EU countries. Staying afloat is the first thing that every CEO worries about.
If entrepreneurs find it hard to receive grants or corporate loans from the country they reside in, then they might look further afield. Overseas financial institutions provide an array of funding options such as venture capital and other private funding and so on.
Unless you go through the big banks, international project finance can be hard to come by. This is proven when doing a search on the internet for finance in may sectors. The biggest area of funding to date is in the technology sector.
International Project Finance
Our funders help to fund startup businesses that require at least 70%+ project finance in multi sector environments such as infrastructure and green energy. Most “mega projects” rely on sophisticated financial modeling and financial structures. Structured finance models based on either equity, debt or a hybrid of both. Debt structured finance is more commonly used for startups as they have little to no equity and carry a lot of risk. It is more common to see private investors flock towards more established corporations with revenue on balance sheets and collateral on their assets/liabilities spreadsheet.
Bank Instruments For International Trade
One of the biggest issues any business has when trading on a global scale is the issue of financial security. The business needs some comfort knowing that that the Buyer will pay for goods received and on time. Using a bank instrument is one example of how you can secure payment should the Buyer not pay on time or at all. Bank instruments can be hard to come by, in fact there are a handful of genuine Providers of “fresh cut instruments“.
Bank Instrument Providers
There are many reasons why people choose to lease a bank instrument from a credible source. Reasons might include
- To fund a project
- Provide security for international trade
- To use other sources of collateral at a fraction of the overall cost
- To use bank instruments to grow and expand a company
Bank instrument Providers can be large organisations such as hedge funds and pension funds and often work to tight timelines. It is impossible to contact these organisations directly so knowing their trusted sources will open many doors for you.
Please note; Prestige Capital Partners are connected to Providers of fresh cut instruments and Monetizers to liquidate bank instruments.
The Difference Between Fresh Cut and Seasoned Instruments
Fresh Cut only means that it has been freshly issued, “seasoned instrument” means that it was issued in the past and is in the secondary market. People buy fresh cut instruments as the bank instrument comes from a direct credible source thus knowing exactly the person/organisation who cut the instrument for lease. Usually bank instruments such as SBLC’s are time limited and should be paid back in full to the Provider within the time specified.
Project Finance Terms
Typically, the duration for project finance is long-term in nature. The process involves forecasting what the anticipated cash flow from a project will be, and extending debt and equity financing based on those projections. Funding international projects might be extended by bilaterally and multilaterally using a mixture of financial institutions and global investment banks. These institutions have an interest in profit sharing of a growing economy’s expansion efforts. It might also derive from a specialty-financing firm that focuses exclusively on supporting international endeavors.
We can source the arrangement for specific project finance (debt or/and equity funding). Our funders offer can offer flexibility through recourse loans that are collateralized by a project’s assets and cash flows. This could finance as much as 90% of the project’s total cost over a term of five to 15 years.
We are mandated to source funding for many worldwide projects (see map below). We realize that there are financiers who have specific geographical locations where they fund. If the project is on the embargo list, we are unable to source finance.
European Project Finance | North America | South America | Africa | Asia | Australasia |
Funding Businesses Worldwide
We deal with global funders who have different appetites for different geographies and industry sectors. If you need help with business growth and expansion, we are able to collateralise and monetize stocks, real estate and gemstone portfolios.
Project Funding Mandates
This map shows the locations of our registered office and operations (in red) global mega projects that we have been mandated to find funding for (in yellow) If you want to know the funding deals done, you can ask our funders once we have established funding capability. (You may have to request this from their lawyer)
If you hold collateral such as bonds and other bank instruments and want to help fund projects, see our investors page. These instruments should appear in clearing houses such as EuroClear. If you are looking to get your bank instrument monetised or issued, Prestige Capital Partners can assist.