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Showing posts with the label Balance Sheet

A Comprehensive Overview of Project Finance and Corporate Finance

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  Project Finance   and   Corporate Finance   (also referred to as Balance Sheet Financing) are two financing models to fulfill the basic objective of meeting the requirement of fund of a business entity, where both rely on debt and equity as a source of funds. The thin line that separates them, are (i) the purpose behind availing these types of finances and (ii) the security offered. Overall financials of a company are managed through   corporate finance , which begins with financial modeling, raising capital, and optimizing fund usage. On the contrary,   project finance   comes into the picture when a specific project needs funding and the project’s assets and the project cashflows are offered as primary security apart from some additional collaterals. Despite the differences,   corporate finance   has often crept into the territory of   Project Finance   and has proven itself useful to finance certain projects. Theoretically, Cor...

Business Loan: How to Decide Which Type and Sources that is Right for You.

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  Business Loan is highly competitive and Finding the right sources of funding for your business can be difficult. There are many types of funding available — investors, grants, loans, etc. — and each has its own application process and set of rules. One of the most common options for small business funding is a business loan. Small business funding sounds like it should be easy to obtain, but borrowing money may not be as straightforward as it seems. As a business owner, you need to know your options so you can tailor your application to the type of loan you’ll actually get. With that in mind, consider these seven types of business loans to figure out which one is right for you. #1 Friends and family loan Family and Friends loan remains the first step and baseline for anyone who is looking out to get an enterprise off the ground. It can also be used for cash flow or to chase growth among established businesses. As it implies, you ask your friends and family to lend you money. It’s...

3 Financing Methods for Infrastructure Projects

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3 Financing Methods for Infrastructure Projects Good numbers of financing methods that are available for infrastructure projects, and for public-private partnership (PPP) projects in particular 1#Government Funding The Government may choose to fund some or all of the capital investment in a project and look to the private sector to bring in expertise and efficiency. This is generally the case in a so-called  Design-Build-Operate  project where the operator is paid a lump sum for completed stages of construction and will then receive an operating fee to cover operation and maintenance of the project. Another example would be where the Government chooses to source out the civil works for the project through traditional procurement and then brings in a private operator to operate and maintain the facilities or provide the service. Even where Governments prefer that financing is raised by the private sector, increasingly Governments are recognizing that there are some aspects of t...