Project financing has different risk characteristics from general fixed assets investment projects, such as loan repayment mainly depends on the future cash flow of the project or the value of the project's own assets; Usually, the investment amount is huge, the financing leverage ratio is high, the construction or operation cost is high, and there are many participants, so the loan risk is also great. Many banking financial institutions often need to participate to disperse and reduce risks through complex financing and guarantee structures. According to the existing loan management methods, the main basis for issuing loans is the past and present operating benefits and financial status of enterprises, such as future cash flow, future asset value and expected income.

In particular, in order to make up for the lack of professional depth of banking financial institutions in finance and taxation, law, industrial technology analysis and so on. The project financing business guidelines clearly stipulate that the lender may entrust or require the borrower to entrust an independent intermediary agency with relevant qualifications to provide professional opinions and services in law, taxation, insurance, technology, environmental protection and supervision for the project as needed. At the same time, in the risk assessment stage, we should fully identify many risks faced by project financing, including policy risk, financing risk, completion risk, cost overrun risk, exchange rate risk, environmental protection risk and so on. The lender shall require the borrower or the relevant parties of the project to sign the general contract, handle commercial insurance, establish the completion bond, provide the completion guarantee and performance guarantee, etc. , to minimize the risk during construction. Risks in operation period include raw material risks, product market risks and operational risks. Lenders may require borrowers to sign long-term supply and marketing contracts, and use financial derivatives or sponsors to provide capital gap guarantees. , thus effectively dispersing the risks during the operation period.

During the loan period, the lender shall continuously monitor the construction and operation of the project, regularly assess the project risks according to the loan guarantee, market environment, macroeconomic changes and other factors, and establish a loan quality monitoring system and a risk early warning system. In case of circumstances that may affect the safety of loans, corresponding measures should be taken in time. At the same time, if a number of banking financial institutions participate in the financing of the same project, syndicated loans should be adopted in principle.