Project finance services cover Greenfield industrial projects, capacity extension of existing manufacturing units, construction projects or other infrastructure projects. Project finance services are quite often channeled through special reason vehicles and arranged against the future cash streams to materialize from the project.
What is ‘Project Finance’?
Project Finance or Project Financing is defined as a long term capitalizing process of industrial endeavors and kernels which is based on limited auxiliary of monetary structure where the debt as well as the equity of the project is used to finance it and the debt is repaid from the profit instigated by the venture. It is a type of non-expedient loan which is secured by the assets acquired by the project and is returned totally by the profit made by the project. In the world today the Industrial sector is rapidly growing. This has made the term Project Finance important in the financial market over past few decades. It is an old method of financing heavy risky and developing ventures.
Project Finance from IPFS
Finance our up to date heroes of today’s entrepreneurs and small business professionals. With our nationwide network, we can regularly find a result for your financing needs.
Being one of the reliable and renowned enterprises of the industry, we are an awfully reliable Loan Service Provider to our valuable clients. The services from IPFS that is Project Finance in India broadly treasured among the customers owing to their intense analysis of the patrons’ needs and provide enormously altered solutions to the clients.
In general, project finance services cover the greenfield industrial projects, capacity expansion at existing manufacturing units, real estate ventures or other infrastructure projects. Capital intensive business expansion and diversification as well as replacement of equipment may be financed through the project term loans.
Project finance company is quite often channeled through special purpose vehicles and arranged against the future cash streams to emerge from the project. The loans are approved on the basis of strong in-house appraisal of cost and viability of the ventures as well as the credit standing of promoters.
Project Finance Procedure
As many existing companies look to expand their business and their manufacturing facilities, the basic choices in financial options are “off-balance sheet” or “limited recourse” financing services. Our Project Finance Company Team is very experienced in counseling clients in evaluating structures to accomplish the desired goal. This experience in structured finance for industrial companies is an integral part of our finance practice. The greatest hurdle in implementing an idea as a project is money and project finance can be proved as a solution to this problem. The procedure of financing can broadly be classified into two types: equity capital and borrowed capital or debt capital. A project manager’s duty is to make use of these two options discreetly as per the project’s nature. Other options for funding a project include share capital, debenture capital, term loans, seed capital, government subsidies etc.
Recent studies show that India tops the list of countries ahead of US and Australia in terms of worldwide project finance market. The finance giants are eager to provide the project finance in India. Like the World Bank is yearning to fund the solar energy projects in India. As a developing nation India requires humongous investments to better its kernel and this has given birth to the sudden interest in financing projects in India.