In the world of project funding there are many ways in which capital can be raised. We have outlined below large project financing options offered in the finance market, as well as what funders expect in return for investing their capital into projects.
Renewable Energy is a sector which has experienced year on year growth, funders now have large appetites in funding renewable energy projects. If we change our habits, we can easily make use of renewable resources instead of raping the earth for fossil fuels. Using renewable resources can increase productivity and efficiency at low cost which can have a positive impact and a brighter future for generations to come.
World Governments have agreed to cut carbon emissions by 2% but unfortunately, some have cut funding in these areas. Countries like China are becoming a global superpower in renewable energy as they have recently cut their carbon emissions. Given the worlds incline to go green, funding renewable energy projects is a must!
The Sun discharges charged particles through space which hits the Earths magnetosphere. We see these charged particles in the polar regions where we see a green cosmic dance of these charged particles. Every 30-40 years the amount of sunspot activity on the Suns surface changes. This could be some suggestion that the Sun goes through seasonal changes bringing hot temperatures on to the Earths surface.
Solar energy is a free, renewable resource. Harnessing the power of the sun is still a relatively new idea. The ability to use solar power for heat was first discovered in 1767. The inventor, Horace de Saussure built the first thermal solar collector which he used to boil water and heat up food. In 1891, Clarence Kemp then patented a solar water heater to use for commercial purposes. We still use solar power in the same two forms today, thermal and photovoltaic.
An executive summary is an abbreviated version of a business plan. It allows the reader to obtain a quick overview of the business. Executive summaries are the first documents a lender will read, if written correctly and can be understood, it would increase the chance of getting the lender to read your business plan. Most entrepreneurs don’t realize the importance of this document because it is often looked as “unnecessary” whereas it increases your chance of being funded.
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 international startup businesses that require at least 70%+ finance injection and can finance 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. One way of receiving international project finance for your project abroad is by cashing in an SBLC.
Project Funders Worldwide
There are two categories of business funding. Both of these groups entail raising capital from global companies
- Business finance for startups UP TO $5 Million USD
- Large project finance for companies FROM $5Million USD
A third option which allows an international startup business greater control over their finances is to obtain a bank instrument
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. SBLC’s can also be used to win contracts and tenders for development projects. For example your company may put in a bid for a tender for the construction of a hospital and by having an SBLC in place this could give the government the security they require to demonstrate that your company has the financial wherewithal to be able to perform and construct the hospital. This is just one example on how your SBLC can be used for project finance. Another way is that you could open up a line of credit with your bank and this is backed by a cash backed SBLC which your bank may require.
Bank Instrument Providers
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“. 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.
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. 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.
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. As well, we are aligned with a number of Providers of cash backed SBLC’s and Monetizers who can assist companies looking to either putting the instrument into trade platform or straight forward trade transactions.
“Infrastructure networks enable people, goods, energy, information, water, and waste to move efficiently.
Securing funding for mining projects can be a difficult task as there can be many issues and red tape. Large-scale mining projects can involve challenges due to political risk and instability depending on the location of the project. They can also be environmentally and socially sensitive, subject by its nature to increasingly stringent planning laws and implementation requirements.