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 your business funded. 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.
“Winners never quit and quitter never win” – Vince Lombardi
The 80’s was the start of the bull market economy. You could invest your money in bonds which were paying out at a flat 15% interest rate, risk free. It was a good time to invest in companies because the corporations were forced to compete with 15% rates to be more efficient and investing their capital wisely.
Winding the clock forward to present day, the federal reserve have been printing money excessively and have been giving corporations access to cheap loans. As a result, companies are over valued through stock purchases, share buybacks which means they are not investing in their future growth. The over supply of money printing is reshaping the global economy which is non sustainable and there is now too much corporate/ private debt. Read more →
Wind energy is the motion of air molecules driven by the Earths rotation this causes difference in atmospheric pressure. The term “wind power” describes the air flow that generates mechanical power.
Wind Power Technology
We have been using wind power for various reasons since ancient times. In the Middle East, buildings have been specifically constructed to act as windcatchers for ventilation. Windcatchers can be used to manage airflow in and around buildings and harnessed in different ways: uni-directional, bi-directional, and multi-directional. The construction of a windcatcher depends on the direction of airflow at that specific location. We built ships that eventually used sail technology to explore and connect the world. In modern times, sail boats are popular in navigating courses in races around the world. Read more →
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.
In our “writing a business plan article, we highlighted “managing risk” in a bullet points because it’s an essential element in your business plan. This article explains further why we feel that this (managing risk) is another factor to consider when writing a business plan. Strictly speaking, these aren’t the only risk assessments your company should undertake but it is a small guideline to show you how one factor can possibly effect the other.
The first milestone for entrepreneurs who want to a business loan is called ‘Seed Capital’ or ‘Seed funding’. It refers to the initial investment raised by the founders from their family and friends who would use savings and personal assets. It is common to see most entrepreneurs do not have enough capital to launch their companies and look for other ways to raise money.
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.
Commercial developments can cost millions to purchase or build thus potentially command huge rental incomes. Despite the upside and potential revenue which projects can generate through commercial transactions, funders most prefer to help those that have flourished or have some equity in place. This makes it rather difficult for startup development companies to get the necessary seed funding.
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