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. We have a long history of successfully originating loans for a large variety of projects including real estate purchases, infrastructure development, energy initiatives, and bio-medical endeavors. Our partners fund major projects from $25 million to as much as $5 billion.
We will consider Viable Projects below $25 million on a case-by-case basis. These Projects will undergo Unique Underwriting Guidelines specific to their industry.
Please contact us thru our website and include a brief description of your Project to initiate a conversation.
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: We can provide a template that is included in our application. The bank will put the verbiage in its own format using the bank’s letterhead.
a) Bank Guarantee (BG/SBLC: Ask the issuing bank to use our template to put the instrument into their own format on their letterhead. That plus the the RWA letter, sent to us via Email, kicks off our due diligence.
b) Avalized Promissory Note (APN): If a Bank Guarantee/SBLC seems out of reach, consider asking a Projects Stakeholder to “SPONSOR” the Capital Guarantee using a simple Commercial Promissory Notewith Bank AVAL.
c) Sovereign Guarantee (SG): We will provide the template for the selected bank.
4) Proposed Monthly Drawdown Schedule: In practice, monthly draws accommodate critical path construction milestones and cash flow requirements using consistent (the same amount each month) or increasing monthly amounts as construction activities ramp up.
5) RWA Letter (BG, SBLC, APN or SG): 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.
*Please send at least the first four of these “Six Essentials”. If the Project qualifies and we are interested, we will request 5 and 6 to proceed with our Due Diligence.