Funding Requirements

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
• CIS/Questionnaires – Risk assessments
• Credit worthiness of client and counter parties – credit scores, collateral, capacity and cash flow
• Credit Enhancement –  Private guarantors/investors, Bank Instruments
• Promoters, credibility and history
• Loan terms and conditions
• Compliant and acceptable corporate structure