Content of project financing loan
Project financing loan is a very broad definition, such as building a power plant. Once the power plant is put into use, there will be accounts receivable, and you can use the accounts receivable as a pledge loan. This can't be called project loan in general, but belongs to project financing loan.
Decentralization of project financing loans
Due to the exclusiveness of the financing subject and the limited recourse, all kinds of risk factors and benefits as project signatories are fully displayed. Determine the maximum risk that all participants can bear and the possibility of cooperation, and use all advantages to design the most favorable financing plan.
4. Diversity of project credit
Provide diversified credit support for all future risk points of the project to avoid and resolve uncertain project risks. For example, the buyer of the project "product" is required to sign a long-term purchase contract * * * agreement * * *, and the raw material supplier will supply at a reasonable price to ensure strong credit support.
5. Complexity of project financing procedures
The project financing is large in amount, long in term and wide in scope, covering all aspects of the overall design and operation of the financing scheme, and requires a lot of legal documents. Its financing procedure is more complicated than traditional financing. Moreover, the proportion of upfront expenses to the total financing is inversely proportional to the project scale, and its financing interest is also higher than that of corporate loans.
Although project financing is more complicated than traditional financing, it can achieve the goal that traditional financing can't.
First of all, the limited recourse clause ensures that project investors will not risk other assets of investors when the project fails;
Second, in the national and * * * construction projects, for the "promising" large-scale construction projects, * * * can deal with the possible negative impact of debt on the budget through flexible and diverse financing methods;
Third, for multinational companies to conduct overseas joint venture investment projects, especially for enterprises that have no operational control rights or invest in high-risk countries or regions, other businesses of the company can be effectively separated from project risks, thus limiting project risks or national risks.
It can be seen that project financing, as a new financing method, has greater attraction and operating space for large-scale construction projects, especially capital-intensive projects such as infrastructure, energy and transportation.
Application conditions of project financing loan
1. The project itself has been approved by the * * * department.
2 project feasibility study report and project design budget have been reviewed and approved by relevant departments.
3. Introduce foreign technologies, devices and patents. It has been approved by the economic and trade department and the relevant procedures have been completed.
4. The technologies and devices of the project products are advanced and applicable, with complete supporting facilities and clear technical support.
5. The production scale of the project is reasonable.
6. It is predicted that the project products have good market prospects and development potential, and have strong profitability.
7. The investment cost and expenses of the project are predicted reasonably.
8. The raw materials required for the production of the project have a stable source, and a supply contract or letter of intent has been signed.
9. The project construction site and construction land have been implemented.
10, water, electricity, communication and other supporting facilities required for project construction and production have been implemented.
1 1, the project has good economic and social benefits.
12. Other construction conditions related to the project have been implemented.