You might have heard the term project finance. In this article, we are going to cover everything about project financing. Project finance is all about arranging money for industrial and infrastructure projects. The project finance company arranges for the funds for part-funding of the project and the balance has to be invested by the sponsor/promoter.
For instance, you want to become an entrepreneur and need funds from banks or financial institutions to set foot in the business industry. Initially, they would have a look at the project proposal. It will help them decide whether the project is worth the investment or not. Funds are released in stages as per the progress of the project.
Banks conduct a meeting with the equity sponsors to arrange funds for the project. The loan is given against the property/assets of the project and the cash flows. It is why they are termed as non-recourse loans. As soon as the business starts generating the cash flow, the borrower can start repaying the loan at that time. The property can be seized if he/she is unable to pay the loan on time.
The project finance company helps sponsors/promoters to create a special purpose entity to turn the dream projects of millions of entrepreneurs across the globe into reality.
After obtaining the services of a project finance company, you are going to reap endless perks. Some of them are as follows:
By associating with a leading bank that provides finances for various projects, the entire process will become streamlined and smooth. Resurgent India understands the need for funds from FI'sFI's to grow your business and leaves no stone unturned in helping you accomplish your goals by doing everything step by step:
All these steps are followed by the leading investment bank Resurgent India. It is the duty of the borrower to pay the loan on time.
The Project finance company has turned the dreams of millions of individuals into reality. You must go through the terms and conditions of the loan before signing the document. It is better to repay the loan on time as your property can be seized if you are unable to pay the loan to the bank or indulge in fraud with the bank. You can compare the interest rates offered by different banks and choose the one that matches your project's needs. Only a leading project finance company like Resurgent India understands that business demands funds at various stages. Immediate funding requirements can only be fulfilled through project funding.