Funding Requirements

Project Funding Requirements - Prestige Capital Partners

Basic Funding Requirements

Imagine going to your local bank asking for a business loan. The bank will ask to see various documents demonstrating that you have indeed done your homework, and that the project in itself is a viable project to lend against. Project funding is no different but there are several ways you can fund a project. In order for a suitable funder to assess whether or not your project is worth funding, these are some the minimum funding requirements you’ll be asked for:

  • An Executive Summary
  • A Business Plan
  • Financials (if not current then projected)
  • PPA’s and relevant licenses
  • C.V’s of project principals
  • Our ‘application for funding’ form
  • **Proof of funds (Most lenders will require POF) or able to pay fees. Depending on the method of funding, some funders may require cash equity
  • A Registered Company (a company website will would be helpful also)

Critical Components for Business Funding

Before a lender approves a project for funding, they will evaluate the mechanics of it. The business plan and financials should show the projects strength and performance in these prime key areas;

  • Goals, vision and strategy
  • It should be thoroughly researched and innovative
  • The team should be qualified or have experience in the project sectors
  • There should be growth (strong market for the products)
  • Risk managed

When doing their due diligence, funders will often look at the following components:

  • Cash and collateral available and already injected sunk into the project (the more the better)
  • Solid commercial agreements
  • KYC – Risk assessments
  • Credit worthiness of client and counter parties – credit scores, collateral, capacity and cash flow
  • Credit Enhancement –  private guarantors, Bank Instruments
  • Promoters, credibility and history
  • Loan terms and conditions
  • Compliant and acceptable corporate structure

Alternative Business Funding Method

Bear in mind since 2008, the banks have tightened their lending criteria and have become increasingly selective on who they lend money to. Even projects which have collateral to put up against a loan won’t necessarily be guaranteed a loan. Lenders are looking for projects which pose maximum potential with minimum risk. After all lenders are in the business of protecting their interests, not yours. Therefore in order to present a comprehensive in-depth analysis, creative problem-solving and conceptual thinking and are parts of the service we provide to achieve funding success.

Very often in this industry it is not what you know, moreover it is about who you know. Knowing our funders and what they are looking for gives us valuable ‘insight’ into their funding requirements – each one is different from the other. Our job is to make the introductions and to represent your company well, connecting you to the right suitable funder for your project. If there seems to be no movement in your application, it might be worth re evaluating your business plan, funders can be rather picky!