How 100 Percent Project Funding Is Great For Business

By Thomas Scott


Many people are in search of funding involving the full amount needed as start up capital minus many kinds of requirements asked for in traditional lending. Venture capital is the term for this, and a lot of businessmen seek this for their projects and investments. And those who are unable to get quick credit at the needed time will be losing lots of business opportunities.

Other than that, there are more things that will be lost, like time, interest, investor confidence, and the like. 100 percent project funding enables commercial projects that much more leverage on the intangibles in fast moving markets and more. The funding is in millions of dollars or even more, but the consideration is always for fast and efficient transactions minus the pain.

For older methods, this last may be a factor played, either as bargaining counter or pay up pressure, but these are considered outdated in modern transactions. There are better means of assuring that payments are made, things that the capital fund sources have accessed and innovated on. One salient item is in how the client and creditor relationship is extended and made stronger.

For business, the rules for credit can be very painful with established or traditional rules. The pain is not something inherent in the process per se, but it might be something found with results, and this means real pain. For instance, when a bank is unable or unwilling to move scheduled payouts forward because of some requirement consideration, a project can be left hanging.

It happens often, and one more thing the traditional bank does will pay out in staggered amounts or will not provide the needed amount that will be truly effective for the project. And as the schedule lengthens, the less money available because of legal restrictions. The process is reversed when you deal with new project funding outfits.

A company operating in this system thus works like how a client ideally progresses. This same consideration is applied on any type of project, projects that cannot move without proper funding. The process is relatively new and grew out private lending operations, when it was realized that a new system must be made for companies with bigger capital needs.

Minimum capitalization starts at about five or ten million, with the ceiling reaching up to fifty or a hundred million, but this depends on the outfit you have contacted. Here, there is a grace free period that says you only pay as soon as a projects show positive cash flow for the project that is capitalized through the loan. For businesses all over the world, these terms are better than good, and something they will certainly work for.

Often, the investment credit entity here will have 50 percent of the funds available through private lending. Another 50 percent is available through private equity, which means transferable values that can be taken from securities and government backed dept papers. The ratios can go at least 10 percent either way, depending on need or preference.

There is no collateral involved, but you have to have an incorporated company structure or business that has excellent market potential. The project specs are usually studied for viability, and it is done quickly enough. Also, there is no need to match the capital offered with a good fraction from out of your own or company funds, whether material or cash.




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