Project Financing

What is Project Financing?

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Project financing is actually a great way for a company to handle big projects that take a long time. For example, projects like building bridges, highways, or telecommunications systems. With Project Financing, companies can get the funds they need without having to use up a lot of their own financial resources.

This method involves getting loans from banks or investors, which are paid back from the revenue generated by the project itself. So, if the project is successful, the company can repay the loan from the project’s profits.

Another thing is, Project Financing is often used for complex and expensive projects because it allows for staged financing and minimizes the financial risk for the company. Usually, all the risks of the project are shared among investors, banks, and the company, so no single party bears too much of the burden.

In other words, Project Financing allows companies to secure funds for large-scale projects without putting too much strain on their own finances, and they can focus on successfully completing the project.

Process that involved in Project Financing

1. Plan the Project

  • Check Feasibility : See if the project is doable and worth investing in.
  • Create a Business Plan : Outline how the project will work, how much it’ll cost, and how it’ll make money.

2. Get the Info for Project Financing

  • Prepare Documents : Gather all the necessary papers, like project plans and cost estimates.
  • Provide Details : Share info about the project owner’s financial background and experience.

3. Arrange Funding

  • Find Funders : Look for banks, investors, or other sources to provide the money.
  • Set Up Financials : Decide how the money will be used and how it will be repaid.

4. Negotiate Terms with Project Financing Company

  • Discuss Details : Agree on the terms with funders, like interest rates and repayment schedules.
  • Sign Agreements : Finalize everything with a formal contract.

5. Manage the Project

  • Execute : Carry out the project as planned.
  • Monitor : Keep track of progress and update funders with regular reports.

6. Complete and Repay

  • Finish Up : Make sure the project is done as expected.
  • Repay : Pay back the funds or returns to investors as agreed.

7. Review and Audit

  • Check Finances : Make sure all financial transactions are correct.
  • Assess Success : Evaluate how well the project met its goals.

Lists of Companies that offer Project Financing

Commerze Capital (Preferred Choice for Project Financing)

  • Contact No : +60 3-27113129
  • Address : Unit C-10-3A, KL Trillion, No 338 Jalan Tun Razak, 50400 Kuala Lumpur.
  • Working Hours : 9am – 6pm

IFS Capital (Malaysia)

  • Contact No :  +60 3-2161 7080
  • Address : 2nd Floor, Menara Atlan, 161, Jalan Ampang, Kuala Lumpur, 50450 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia.
  • Working Hours : 8:30am – 5:30pm

Planworth Global Factoring

  • Contact No :  +60 16-216 2743
  • Address : Suite B-11-2, Megan Avenue 1, No, 189, Jln Tun Razak, 50400 Kuala Lumpur, Federal Territory of Kuala Lumpur, Malaysia.
  • Working Hours : 9am – 6pm

Hidayah Factors

  • Contact No : +60 3-8322 8848
  • Address : No. 3A-2, Blok J, Jalan GC 11, Glomac Cyberjaya, Cyber 4, 63000 Cyberjaya, Selangor, Malaysia.
  • Working Hours : 9am – 6pm

Optimai (Malaysia)

  • Contact No : +60 16-299 1410
  • Address :19, 13, 231, Jln Tun Razak, Imbi, 55100 Kuala Lumpur, Federal Territory of Kuala Lumpur, Malaysia.
  • Working Hours : 9am – 6pm

Credit Guarantee Corporation Malaysia Berhad

  • Contact No : +60 6-601 7600
  • Address : Pusat Dagangan, No. 9, Jalan S2 B15, Seremban 2, 70300 Seremban, Negeri Sembilan, Malaysia.
  • Working Hours : 8:30am – 5:30pm

MAA Group Berhad

  • Contact No : 03-6256 8000
  • Address : 13th Floor, No 566, Jalan Ipoh, 51200 Kuala Lumpur, Malaysia.
  • Working Hours : 9am – 6pm

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