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Project Finnce Loan in Surat

Best Project Loan & Project Finance Consultants In Surat

Project finance is nothing but sourcing funds to a long term infrastructure project, or any other project, and using the cash flow generated from the project to payback the financing procured.
Every project needs financing to implement and run it successfully, thus preferring to finance the project in an off-balance sheet manner is a useful tool for companies that wish to avoid the issuance of a corporate repayment guarantee.he project finance route permits the sponsor to extend their debt capacity by enabling the sponsor to finance the project on someone’s credit, which could be the purchaser of the project’s outputs.

Key Points

Project finance (PF) is a form of financing based on a standalone entity created by the sponsors, with highly levered capital structures and concentrated equity and debt ownership
It Provides long-term, limited recourse or non-recourse loans used to finance large commercial, industrial, infrastructure, and sovereign projects throughout the world.
The debt and repayment structure are based on the project finance model where projected cash flow of the project rather than the balance sheets of the project sponsor.
Involves number of equity participants, who can be project sponsors or equity investors, and a consortium of lenders that provide the project loan to the project.
Project finance loans are almost always extended on a non-recourse or limited recourse basis and are secured by the project assets and operations.

Repayment of the loans occurs entirely from project cash flow, not from the assets or credit of the borrower.

What makes a project finance different from other financing ways?

Project Finance is different from other ways of financing because its loan structure relies primarily on the project’s cash flow for repayment. In this, the project’s assets, rights and interests held as secondary security or collateral. These kinds of facilities are mostly availed by the private sector companies because companies can fund major projects off balance sheet.

Now let’s break down Project Finance

A simplified Project finance structure for a BOT project i.e. build, operate and transfer includes a lot of elements and points.

When a new project is planning to get a start. In the build or construction phase, there is no revenue stream. Debt service possibly starts at the operations phase only. As we are your loan provider so we will take significant risks during the construction phase during this phase the project remains off balance sheet for sponsors and government.

Like this, there are many key points linked to a project finance. Our experts will suggest and provide a best-structured project financing plan for you.

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