Fuelling Ambitious Projects with Tailored Financial Solutions
Project Finance
Project Finance is a specialized financial service designed to fund large-scale infrastructure, industrial, and commercial projects. Whether you’re planning to build a new facility, expand your operations, or develop infrastructure, Project Finance allows you to secure funding based on the future cash flows generated by the project itself, rather than relying solely on your existing balance sheet.
We assist you in navigating the complex landscape of Project Finance by identifying the most suitable financial products, structuring the financing in alignment with your project’s unique requirements, and connecting you with the right lenders through our extensive network. Our expertise ensures that you secure competitive terms and favourable conditions tailored to the scale and scope of your project. From initial assessment to financial closure, and throughout the project’s lifecycle, we guide you every step of the way.
How to obtain Bank Funding
Here are the key things you should ensure while obtaining bank funding
Ensure the project reaches COD on time, as it marks when revenue generation begins, and loan repayment schedules are activated. Delays in achieving COD can negatively impact the project’s financial viability.
Accurately estimate total project costs; banks won’t cover cost overruns, so plan for contingencies. Having a buffer can protect against unexpected expenses that could derail the project.
Provide realistic financial projections to demonstrate the project’s viability and secure favourable loan terms. These projections should be thoroughly vetted to instil confidence in lenders regarding the project’s success.
Align the loan disbursement schedule with project milestones to ensure timely availability of funds. This alignment helps maintain project momentum and prevents delays due to cash flow issues.
Structure the repayment schedule in line with cash flows, considering factors like moratoriums and balloon payments. Ensure the schedule is sustainable to avoid financial strain during the repayment period.
Determine the correct loan amount upfront, as increases aren’t possible later, ensuring it covers the entire project. A thorough assessment of all project needs is essential to avoid underfunding.
Be aware of heightened execution and marketing risks with larger loans and develop strategies to mitigate them. Proper risk management is critical to ensuring the project’s success and the ability to meet repayment obligations.
Incorporate soft costs and working capital properly. Accounting for these expenses ensures the project remains on track without financial shortfalls.
How to obtain Bank Funding
Key Industries
New Manufacturing Entity
If you are setting up a new pharma, food processing, textile or any other manufacturing facility, obtaining project finance could help you to not only make your dreams a reality, but also enable you to obtain government support in the form of subsidies. Bank funding includes a combination of construction finance for civil works and foundation and machinery term loans for plant & equipment. All permissions and approvals should be ensured. We assist in identifying the right banking partner for you, preparation of documents, and facilitating the project finance from the banks to help you get the requisite funding on a fast-track basis and in the most competitive terms.
Residential Real Estate Project
While cash flow from selling of units is possible from the initial stages, to maximize the returns from the project, availing loans from banks could be a way forward, once the RERA of the project is obtained. We assist you in creating a long term strategy against which a growth journey in your real estate empire can be made. We help you find the best lenders for a Loan Against Property, ensuring competitive rates and favourable terms with minimal hassle.
Healthcare & Hospital Projects
Hospital Projects are critical not only for the developers but also for the nation’s health and well-being. Unlike other real estate ventures, hospital projects have a profound impact on public health, making them vital long-term investments. Bank funding includes a combination of construction finance for civil works and foundation, and machinery term loan for plant & equipment. It should be ensured that all permissions and approvals are in place. We assist in identifying the right banking partner for you, preparation of documents, and facilitating the project finance from the banks to help you get the requisite funding on a fast-track basis and in the most competitive terms.
Commercial Real Estate
This includes commercial office spaces, shops and godowns. Unlike residential real estate, the returns in a CRE project comes if we own the project over the long term. For this, a combination of construction finance and lease rental discounting is the most optimal way of maximizing returns on the investment. We assist you in creating a long term strategy against which a growth journey in your real estate empire can be made.
Hospitality Projects
In the hospitality industry, returns are closely tied to the long-term success and sustained occupancy of the property. Unlike other real estate sectors, the key to maximizing returns lies in maintaining high standards of service and continuous property enhancements. To achieve this, a strategic combination of construction finance and revenue-based financing options is ideal. We assist you in crafting a long-term financial strategy that aligns with your vision, ensuring that your hospitality venture thrives and grows into a robust, profitable enterprise. Let us help you map out a growth journey that solidifies your position in the competitive hospitality market.
New EPC/ Tender Projects
Since these projects are won through tenders or are entered into with large private parties, the customer requires bank guarantee in the form of performance bank guarantee as well as financial bank guarantee against the advance mobilization. Along with the same, a letter of credit and cash credit facility will be required to coordinate with the various vendors and fund the project towards achieving each milestone payment.
Road / Port Infra Projects
These kinds of projects are very capital intensive with long gestation periods, wherein the cash flows get received over periods of 20-30 years. In such scenarios, such projects can be completed only through strategizing with the best utilization of capital available, both own funds and debt funds. Financial Closure in such projects is also time bound as per the terms of the bidding tenders won. We assist in creating the right strategies to ensure that financial closure does not become a bottleneck in completing the execution of any project