Major New Project Financing

Many companies resort to financing new projects through existing cash flow. This strategy could backfire if said businesses encounter unexpected expenses or a downturn in revenue. Fortunately, there are additional options available to fund new projects even when that bank says no. The key is knowing where to look and having the expertise to develop a comprehensive funding plan, and this is where Ponce D. Moody Funding can help.

If your company is seeking financing for a major new project or expansion, we may be able to help. Our partners fund major projects from $25 million to as much as $1 billion. funding is provided using a Standby Letter of Credit (SBLC) or the Cash Method.

SBLC: The loan is guaranteed by a strong financial institution, generally one of the major banks.

Cash Method: Joint Venture or Debt – Both require a deposit of 30% that will be returned upon project completion

• Joint Venture: The lender will require an Equity Portion. Payments will never be made under this method. As a joint venture, the funding is provided for a share of the project revenue. Equity partnerships help protect your cash flow and connect you with a valuable long-term business relationship.
• Debt Financing: Generally not preferred but considered on a case-by-case basis.

We are not miracle workers. If you are operating in a small window of time where a financing decision is needed ASAP, we probably cannot help.

Our lenders and investors may be able to fund a significant portion of your project using one or multiple strategies. We can help secure venture capital from private equity or emerging market funds or issue financing through various projects, corporate, micro, property, private, and asset financing sources.

Fund distribution generally depends on your project scope and development timeline. In most cases, payments are made over time using a draw/tranche schedule.

How To Apply for New Project Financing – Six Essentials

Funding of projects with a minimum of $25 Million US Dollars is a detailed process. It will not happen if the PROCESS is not followed ENTIRELY:

1) Project Name & Budget: In the US or Euros Currency (note that lenders can loan/invest in most currencies; just the guarantee itself must be in either Dollars or Euros)

2) Project Costs: Amount of Funding Required (must be 25 Million or more) – Use of Funds (we prefer US Dollars)

3) Proposed Financial Guarantee Verbiage: The two types of private-sector security are below.

a) Stand By Letter of Credit (SBLC): Issued in the name of the provider under the rules of The International Chamber of Commerce.

b) Avalized Promissory Note (AvPN): If a SBLC seems out of reach, an AvPN can be issued by the Contractor and avalized by their bank.

4) Proposed Monthly Drawdown Schedule: In practice, monthly draws accommodate critical path construction milestones and cash flow requirements. The amount is the same each month.

5) RWA Letter ( SBLC, or AvPN): The issuing Bank’s Letter Of Intent (LOI). This will be the bank of your choice. Any reasonable large bank will do. Start with the one that knows you are your sponsor to save time with their KYC (Know Your Customer) Procedures.

6) Project Summary: Please include a Business Plan and Executive Summary along with any additional documents in support of your project.

Contact Ponce D. Moody Funding

Ponce D. Moody Funding originates debt and equity financing for projects with a minimum need of 25 million. We look forward to learning about your project.