Project Financing
Project financing involves funding long-term infrastructure, industrial projects, and public services based on the projected cash flows of the project rather than the balance sheets of its sponsors. Typically, this financing is used for large-scale projects like highways, power plants, and commercial real estate developments. The financing structure often involves multiple equity investors, a syndicate of banks, and other lending institutions, with the project’s cash flow serving as the primary repayment source.
Working Capital Financing
Working capital financing provides businesses with the necessary funds to cover their short-term operational needs and manage their day-to-day expenses. This type of financing ensures that a company has enough liquidity to cover payroll, inventory purchases, and other immediate expenses. It is often secured through short-term loans, lines of credit, or trade credit arrangements. Effective working capital management is crucial for maintaining smooth business operations and ensuring the company’s financial stability.