Project Finance Solutions
Start Up Project Finance
There aren’t many lenders offering start up project funding. This is because it carries risk to the lenders. In order to get project financed there can be limited options available. Start ups can raise initial funds through a letter of credit from a top bank, venture capital firms, private equity firms, joint ventures and straight forward debt funding to name but a few methods.
We have good relations with many trusted lenders who are prepared to fund projects from start up. We put all our resources into sourcing debt/equity/JV lenders who can structure finance for the projects needs which enables startups to get underway. Project finance starts from $10 Million USD.
Series Round of Finance and M&A
We’re aligned with other financial companies who can provide finance for series rounds and M&A’s. It is worthwhile to consider the alternative finance options below.
External Collateral Finance
Very often projects come with very little to no collateral/assets attached. Given that a lot of these projects are start ups, having sufficient collateral to begin with is a big ask. Banks will often look for collateral as security to lend against and without this collateral, projects can find themselves in a difficult dilemma. The solution? Finding an external collateral provider who can ‘lend’ their collateral to the project (on paper) so as to demonstrate some form of assets to the potential lender. This is quite normal in the corporate finance world whereby one corporation will ‘lend’ their collateral to another company in order to ‘beef up’ their assets on paper which in turn can be loaned against.
Off Balance Sheet Lending
Very often lenders will look for two things on a balance sheet when assessing whether or not to fund a project;
- a) collateral/assets
- b) company turnover
With a new project is getting off the ground, the above can be difficult to demonstrate given that the project is not yet established. Whilst they are few and far between, there are lenders who will do what is called ‘off balance sheet’ lending. This is where they will assess the project on it’s own merit, strength of management and the potential to start-up, grow and expand. They will also assess the potential to grow the collateral and least not potential for generating revenue. Another words they will lend based on the future and do what is called ‘off balance sheet’ lending as opposed to what the project may or in this case may not have now on their balance sheet.
Lines Of Credit
Corporate lines of credit is a pool of unsecured credit that is made available for borrowing to help manage cash flow. It can be used for a variety of reasons such as; providing a solution to short term cash needs to purchase inventory. The credit line can be structured in a way to offer the borrower convenience and flexibility within the lending term. Below outlines an introduction of two different lines of credit offered by one of our funders’ which can offer your company an alternative finance solution.
Revolving Lines Of Credit
If you are continuously seeking capital to fund ongoing developments, perhaps a revolving line of credit is more suited to your funding needs? This is kind of like having an overdraft facility whereby you can use the credit available, leave it in there to be used at a later date and pay it off early if you wish. This type of funding solution is ideal for projects which keep on expanding and adding to the original project such as a development company who will be building 1, 2, 3, 4 resorts into the future.
For example; Instead of starting a new loan application each time a new resort is being developed, the borrower can open a revolving line of credit. This enables the borrower to develop a resort and before completion, start on a new one without having to submit a new application for funding.
Revolving line of credit offers flexibility to enable the developer to work on several projects simultaneously. As well it enables the borrower the opportunity to pay off any credit early thus not having to carry the burden of interest payments on a large loan whereby the full amount of the loan is not used until later stages of development. *There are associated costs to this product, discussed on a case by case basis.
Credit Lines Against Property
Another way in which we can organize funding is raising a credit line against property (minimum $10m USD portfolio.) We are able to arrange leveraging whereby a credit line can be established to further fund larger funding requirements.
We have service providers who can monetize bank instruments.
- Bank Guarantee
- Sovereign Guarantee