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8 August 2017

What Does It Take To Obtain Project Funding Europe In 2017?

By Ryan Kelly

Financing your International Projects has become more available, but not the way that most developers have been accustomed to over the years. If you are looking for financing for your development recently, you will know exactly what I mean. Project funding Europe is critical as far as the furtherance of any business is concerned.

A fee is when you are asked to pay for the services of providers whether it be for the arrangement of the funding package via the intermediary or a fee levied by the funder themselves. This fee is normally levied at the end of the financing procedure. A cost is something that can't be avoided. The money goes towards actual events such as purchasing a bank instrument on your behalf, blocking funds within a hedge fund, securing private equity money. All these incur costs.

Opening a business involves risks and expenses in the first stages. There is no running away from it. Debt is something that goes hand in hand with project finance. You will have creditors, but you will also have investors. One inspiring entrepreneur can use good ideas, talent and creativity to market the products he or she is selling.

Often this involves another corporate entity to pledge their assets against the instrument for 1 year and 1 day. You now have two parties at risk, the corporation pledging their assets against the instrument and the funder purchasing the instrument to lend against it - this incurs costs. Other costs can include, 1) due diligence 2) to pay for flights for face to face meetings, 3) blocking money within a hedge fund, 4) securing funds from private equity investors, all of this incurs very real costs. Not to say that all companies have these costs.

Another popular source of project funding is family and friends. They can help you create your own business when you borrow money from them but in a concept of a loan payable in the short term. You need to consider taking a few measures to avoid problems with your investors.

As you would expect, there are many good programs, but one of the biggest problems experienced by companies and individuals trying to use these programs is what is referred to as a "Broker Chain." Now before I get any Brokers upset here, let me say that Brokers and Intermediaries are very important parts of the business because without them many clients would not be able to navigate themselves through the mire of programs out there.

If your company is looking for financing for your project and you are dealing with a Broker, it is always best to find out if there are Brokers ahead of your Broker, and if there are, request conversation to whoever is direct with the Trade Group. You are not going to be able to speak with the Trade Group until your project has been submitted and approved, but once it is, you should be dealing directly with the Trade Group or the Group organizing the Program.

To avoid misunderstanding for those kinds of loans, you need to specify things in writing and try to formalize things as much as possible: what is the duration of the loan, what interest you will pay and when you will pay. Remember that your close contacts become sources of venture funding, you need to stipulate the conditions that will regulate their participation: What is interference on the administration of the company? Are investors allowed to sell their shares? What is the method that will be used to divide earnings?

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