Project financing is a loan that typically relies on future cash flow for repayment, with the company’s assets and rights serving as collateral to syndicated lenders. The loan is secured by several project investors being satisfied with the company’s business strategy, and demonstrating that the risks they are taking on will be mitigated by the future generation of funds that will cover the loan repayment.
One specific challenge with this capital solution is the number of separate and often complex contracts which must be completed between numerous parties, and the numerous criteria which must be fulfilled in each one to secure capital.
Worldwide Financing Group works with our clients from the initial stages of this capital solution, by evaluating the company’s potential and prospective cash flow generation and negotiating with the parties involved, through to contract completion. Developing an attractive business model and long-term strategy for clients’ companies is key to securing this option of finance.