Issuance of mega contracts to foreign companies is no new thing in construction or shipping works. Some of these projects require highly trained and experienced firms to help in expediting them. As such, countries who have not enough equipment or skills, give out the contracts to foreign companies under a given budget. However, for a company to start and complete the contract in an efficient and timely manner, it has to solicit for funds from recognized International project finance Europe body. Herewith are factors to consider when looking for a financier.
Financing large scale businesses or contracts is a task that can only be expedited by established financial institutions in any region. Mega contracts involve billions, and since you cannot run to the World Bank for such backing, you should work with one or two institutions in your area to undertake the projects. Prospective companies should have good financial returns and stable customer base for several years.
Not every financial institution can offer financial support to a firm that has projects abroad. Approach companies that have been in existence for ages. A company with a good financial base can be determined by the duration it has been operational. In every region, there comes a financial crisis that strikes out unstable companies, and if a company can overcome this severally, then it is the right place to lend money.
Consider the interest rate and the repayment period of the financing from the lending institution. When these institutions realize that the requested financing is meant for a mega project, they tend to charge crazy interest rates. Calculate your profits from the loan and the interest and if you establish that the interest rates are too high, find a company with a better deal.
Before you are issued with a loan from any financial institution, several procedures have to take place. The banks evaluate the nature of your projects, its period, and the requested funding. After analyzing all these details, they can ask for collateral or guarantors worth a certain amount of money. However, the collateral asked for security should go beyond a third of the requested funding.
You cannot walk empty-handed in a bank and get a loan. You have to provide some documents to prove that apart from being their loyal customer, you must give some collateral or have savings worth a third of your requested amount. The situation becomes more complicated when the contract in question is abroad. Therefore, ensure that you have a guarantor or required capital before approaching any of the financial institutions.
The unexpected challenge may occur when undertaking the contract resulting to delay in payment of the loan as agreed. Most companies fail to understand such situations and rush into confiscating whatever you have in a bid to recover their money. Discuss such possibilities with the lender and see how far they can accommodate you when such inconveniences do occur.
It is a more than a privilege to win a contract in a different region. However, financial difficulties should not subject you into dropping the contract. In your maiden country or the foreign country, many institutions would be willing to support you financially.
Financing large scale businesses or contracts is a task that can only be expedited by established financial institutions in any region. Mega contracts involve billions, and since you cannot run to the World Bank for such backing, you should work with one or two institutions in your area to undertake the projects. Prospective companies should have good financial returns and stable customer base for several years.
Not every financial institution can offer financial support to a firm that has projects abroad. Approach companies that have been in existence for ages. A company with a good financial base can be determined by the duration it has been operational. In every region, there comes a financial crisis that strikes out unstable companies, and if a company can overcome this severally, then it is the right place to lend money.
Consider the interest rate and the repayment period of the financing from the lending institution. When these institutions realize that the requested financing is meant for a mega project, they tend to charge crazy interest rates. Calculate your profits from the loan and the interest and if you establish that the interest rates are too high, find a company with a better deal.
Before you are issued with a loan from any financial institution, several procedures have to take place. The banks evaluate the nature of your projects, its period, and the requested funding. After analyzing all these details, they can ask for collateral or guarantors worth a certain amount of money. However, the collateral asked for security should go beyond a third of the requested funding.
You cannot walk empty-handed in a bank and get a loan. You have to provide some documents to prove that apart from being their loyal customer, you must give some collateral or have savings worth a third of your requested amount. The situation becomes more complicated when the contract in question is abroad. Therefore, ensure that you have a guarantor or required capital before approaching any of the financial institutions.
The unexpected challenge may occur when undertaking the contract resulting to delay in payment of the loan as agreed. Most companies fail to understand such situations and rush into confiscating whatever you have in a bid to recover their money. Discuss such possibilities with the lender and see how far they can accommodate you when such inconveniences do occur.
It is a more than a privilege to win a contract in a different region. However, financial difficulties should not subject you into dropping the contract. In your maiden country or the foreign country, many institutions would be willing to support you financially.
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