Posts

Showing posts with the label Construction

A comprehensive Overview of Construction Loan

Image
  A comprehensive Overview of Construction Loan A Construction loans allows for a prospective home or school owners to borrow money for the construction of a new building. This includes purchasing a new space, payment of labor and materials. If you already own the land, you may be able to use the property as collateral for your loan. Because construction loans generally are intended to cover the building process, they’re typically issued for a period of 12 to 18 months. That said, some loans automatically convert into a permanent  mortgage  once construction is complete. Unlike other traditional loans, securing a loan to completed house undergoes processes. For that reason, the application and approval processes for your loan are more complex than for a mortgage. Your lender likely will want to inspect your architectural plans and examine your financial situation before approving you for financing. You will probably also need to provide an estimated construction timeline ...

The Application of Construction Financing for Large Projects

Image
The Application of Construction Financing for Large Projects The moment you started looking out   project financing for construction   for such a large capital investment, you main motive should be sourcing out sufficient financing to bridge the time between making payments and obtaining revenues. No  large construction project , can be implemented without sufficient financing. The construction firm that oversees the project throughout its building cycle will have to be able to cover the costs incurred by each participant in the project from breaking ground through tenancy. Facility financing  will have long and short term aspects. Long term revenue can include: sales grants, tax revenues, and leases. For short term,  large scale projects, construction financing  is usually obtained through banks, private investors, and municipal projects that may seek bond underwriting or, increasingly, alternative financing companies. For further financing of a large cons...

Steel Mills- Loans and Financing Models.

Image
Steel Mills- Loans and Financing Models. Steel Mills loans and Financing Models presents the business case of the operation of a steel plant using mini-mill technology. The model generates the three financial statements as well as the cash flows and calculates the relevant metrics Discounted Cash Flows, Free Cash Flows to the Firm, Equity Value, Enterprise Value, Sensitivity Analysis. The development of ferrous and non-ferrous metallurgy, which is based on large interconnected projects of mining and processing facilities and foundries, requires colossal investments, supported by a favorable market environment, expensive research and development and mature legislation of the host country. Steel Mills loans and Financing Models presents the business case of the operation of a steel plant using mini-mill technology. The model generates the three financial statements as well as the cash flows and calculates the relevant metrics Discounted Cash Flows, Free Cash Flows to the Firm, Equity Val...

Feed Mill Plant Project Financing

Image
  Market prices of industrially processed animal feed depends upon the availability and value of raw materials, number of processing units, number of processing firms and their production efficiency, prevailing demand and etc. Global processed or concentrated animal feeds alone surpasses the existing animal feed supply in the country. The  establishment of feed mill production  in the face of growing competition requires continuous improvement in all aspects. This includes project financing and engineering services, as well as serious organizational and marketing efforts at all stages of the particular. Construction of a new feed mill plant (or any other large project) requires a considerable amount of financing. And everyone likes to know upfront what the financial viability of the project will be. During the decision making process for building a new plant or extending an existing plant many questions on the financial feasibility need to be answered. Besides a proper ba...

How To Secure Construction Equipment Financing

Image
Tips And Applicable Methods to Secure Construction Equipment Financing The recent advancements in equipment have changed the nature of competition in the construction industry. The truth remains without reliable and effective tools, contractors can’t compete. Lack of large cash reserves poses a lot of challenges for small construction businesses . Even minor construction projects can require expensive equipment. So, how do you finance construction equipment that costs tens of thousands of dollars? Because there are multiple options, there’s no simple answer to this question. Many small business owners in the construction industry successfully use a mix of construction equipment loans and leases. Others might purchase some equipment and lease other tools, depending on their needs. The key is determining the ideal strategy based on your timeline, financial health, and business goals. To help you do that,  Havelet Finance Limited  have reviewed each tool in your construction equi...