Project financing
Tax Credit
The project financing is defined as an organization of more subjects in order to realize a project of the economic and the lender relies as early as the start-up cash flow that will generate future earnings and that will be used to repay the loan.
The main feature of the project financing is that who is funding the project agrees to guarantee the cash flows that are generated during the execution of the project.
The project financing is more a philosophy of investing that has a real industrial activity.
Through this activity the risks come broken down in a harmonious way through specific contracts that bind the participants in the project and it is these guys will provide guarantees mutual bond between the various organizations involved in the project.
In the start-up of project risk exposure has its own character bigger and if you are to comply with the assumptions made in the engineering phase of the process, you could be risking that you are able to return capital funded, on the contrary if the planned follow its natural course of the project, the risks over time naturally tend to zero
This type of operation means that the lenders are focused on the prospects that this project promises for the future by bringing overshadow the financial viability of firms that belong to it.
The primary objective of a project financing activities is to support the treasurer for the project in complete freedom with respect to who is the promoter, it follows that the project financing activities are activities arising as a result of detailed analysis and oriented VISION to a positive future.
This type of realization of the project funding means that it is similar to an off-balance sheet management that allows the creation of high levels of financial strength generally not feasible.
In the last project financing is to be realized when there is the need for high funding for the project to be realized but with stable cash flows that will have in the development of the project itself, with accuracies of return flows to the “penny” The risks in project financing activity is limited exclusively to the participants in the capital placed at risk.
The main actors involved in the project financing are
Commercial Banks Investment
Leasing Companies
Insurance companies
Institutional Investors
Independent organizations
Public authorities
Lascia un commento