"Collateral is something that helps secure a loan. When you borrow money, you agree (somewhere in the fine print) that your lender can take something and liquidate it to get their money back if you fail to repay the loan. Collateral makes it possible to get large loans, and it improves your chances of getting approved if you’re having a hard time getting a loan.
When you have collateral, the lender takes less risk, which means you're more likely to get a good rate."
Commercial projects, especially “tangible projects, are generally highly attractive in current financial markets. (The trend is that lenders and investors are pulling out of bank accounts, and placing wealth into tangible projects). In volatile economies, funding sources do not lend to or invest in “projects” – they fund against “collateral”. Expertly preparing the project to meet “cash backed asset" criteria is thus extremely important, even if it is for private investors. For this reason, establishing assets as “collateral”, or obtaining and structuring third party cash asset backing (even if you do not have any of your own) is a major component of the “Project Financing” support services. A client seeking project financing will need support of their documents to make the project bankable for multiple types of funding options (i.e. both loans and investment) from both institutional and private funding sources.
As an established collateral source, we as a provider have powerful methods to make projects bankable, arrange cash asset collateral , or asset backing into the funding package. (Private investment can be structured different if you are not willing to give away up to 15- 30% of equity). This service is fully flexible for either commercial loans, private direct investment, or both.
Clients are allowed to switch between either lending type during the course of work by the provider, and can ultimately launch even both types of funding, under the same service package. Obtaining project financing can be done in a way that is extremely simple for the client, but requires intensive and fast-paced work in order to get the deal done by a banking institution, to make the project (and some form of structured collateral)”bankable” in a way that traditional “collateral based lenders” or the most demanding investors can easily accept.
Use the Contact Us button to the right to let us know what your needs are.