Project Funding

It refers to the funding of long-term projects, like industrial projects, Establishment of factory’s/Service units/ enterprises, infrastructure projects, and others specific SPV ventures. Sometimes, this project finances concept works on combination of debt and equity.

The objective project funding is to raise the required capital to start, sustain and successful completion of proposed project. requirement of project funding will assess by the merits and return on investment, financial viability of the such proposed project. that the project cash flows need to assure the repayment of debt.

It’s a process of obtaining different type of financial resources for the purpose of implementing a specific project or venture. Here the collateral security will be the project itself, sometimes bankers may ask additional collateral security also.