Project Financing.

A Project Budget should contain all of the costs associated with the day to day running of your business which generally include: Labor costs: employee wages, benefits, payroll, taxes, insurance and fixed overhead. Material procurement costs should include: goods, services, equipment, and supplies needed for the project that comes from external sources.

 

Project Funding: Without proper funding, projects usually fail. The key to obtaining proper finance is taking the time to research approximately how much capital will be needed to achieve the company's goals and objectives. The best way to do this is to employ the services of a good Accountant who is experienced in your category of business. Debt and equity that is invested is used to finance the projects which are paid back from the cash flow generated from the project itself.

 

Project financing is a loan structure that relies primarily on the project's cash flow build from the project's assets, rights, and interests which are held as primary collaterals with the financer. Project finance is attractive to the private sector because companies can fund major projects off-balance sheet (OBS).