Project Finance and Loan Analysis Essay - 1668 Words

Project Finance Project financing is a non-traditional financing technique that is now being used even by many high-profile corporate projects. It is increasingly emerging as the preferred alternative to finance fixed assets and other large-scale projects. As a study, Project Finance includes understanding the rationale for project financing, how to prepare the financial plan, assess the risks, design the financing mix, and raise the funds. As per the International Project Finance Association, ‘Project Finance’ is defined as â€Å"The financing of long-term infrastructure, industrial projects and public services, based upon a non-recourse (Project Finance that is secured by some sort of collateral, usually property, plant, equipment etc. is†¦show more content†¦Term loans are usually the basic vanilla commercial loan and bankers classify them into two categories: ï  · Intermediate-term loans: Usually running less than three years, these loans are generally repaid in monthly installments from a businesss cash flow. ï  · Long-term loans: These loans are commonly set for more than three years. Most are between three and 10 years, and some run for as long as 20 years. Long-term loans are collateralized by a businesss assets and typically require quarterly or monthly payments derived from profits or cash flow. Term loans are most appropriate for the established small businesses that can leverage sound financial statements and substantial down payments to minimize monthly payments and total loan costs. The best use of a term loan is for construction; major capital improvements; large capital investments, such as machinery; working capital; purchases of existing businesses. Fortunately, the cost of such a loan is relatively inexpensive if the borrower can properly allocate such loans to generate funds. The bankers usually look at the five â€Å"C’s† before giving any term loan: Figure 2: The 5Cs of Loan Analysis ï  · Character: Character is the judgment of a banker about the borrower. A banker often checks the previous loan and repayment history of the borrower to see how trustworthy the borrower is. A banker also sees the educational background and experience of the borrower to see the borrower’s hands on experience. ï  ·Show MoreRelatedWhat Are The Types Of Long- Term Finance971 Words   |  4 Pagesterm finance that are available to make investment in venture capital business includes both internal and external source of finance. Internal source means issue of share capital, debentures, retained earnings, disposal of any surplus asset that is not needed anymore. However, external sources include bank loans, investors’ loan and loans from financing institutions. Projections are the numerical forecasts that the investor is actually buying and investing in (Dalabeeh, 2013). The analysis of theRead MoreResearch Proposal1706 Words   |  7 Pagesaffecting the success rate of microfinance in Economic students association funding project By GROUP SEVEN 4th November 2010 DECLARATION We hereby declare that this research proposal has not been submitted to any other institution for any academic qualification. By Group 7 members Date 4th November 2010 DEDICATION This proposal is dedicated to the ESA for it’s fully support in ensuring the success of the project. TABLE OF CONTENTS Cover page Declaration Dedications Table of content Abstract ChapterRead MoreFinancial Leverage And The Performance Of Firms Essay923 Words   |  4 PagesLimited Leverage is good for business Name Institutional Affiliation Date Leverage refers to the strategy whereby a company uses debt financing or borrowed funds to finance its operations and generate higher returns. Research conducted indicates that there is a positive relationship between financial leverage and the performance of firms. Use of financial leverage is one of the factors that contribute heavily in theRead MoreManagers Basic Tools Used for Making Financial Decisions867 Words   |  4 PagesManager’s Basic Tools Used for Making Financial Decisions Willie A. McCall Principles of Finance – Writing Assignment 1 Professor Eleanor Cook 30 January 2011 Manager’s Basic Tools Used for Making Financial Decisions Explain why market prices are useful to a financial manager. A competitive market is one which a good can be bought and sold at the same price. We can use prices from competitive markets to determine the cash value of a good. Whenever a good trades in a competitive marketRead MoreFin 419 Edu the Power of Possibility/Fin419Edu.Com1466 Words   |  6 Pages1 DQ 3 FIN 419 Week 1 DQ 4 FIN 419 Week 1 Individual Finance lab FIN 419 Week 2 Individual Assignment Financial Outcomes Paper FIN 419 Week 2 DQ 1 FIN 419 Week 2 DQ 2 FIN 419 Week 2 DQ 3 FIN 419 Week 2 DQ 4 FIN 419 Week 2 Individual Finance lab Problems FIN 419 Week 3 Learning Team Assignment Capital Valuation Paper FIN 419 Week 3 Team Assignment Working Capital Strategies Paper and Presentation FIN 419 Week 3 Individual Finance lab Problems FIN 419 Week 3 DQ 1 FIN 419 Week 3 DQ 2 Read MoreFinance Q A Essay975 Words   |  4 Pagesan investment decision and the market price of the stock that will reflect all the information considering these factors (Arain, 2011). 2. Discuss how the Valuation Principle helps a financial manager make decisions. Valuation Principle is the analysis between values of benefits and costs. This gives an understanding for creating decisions in a company. When valuing a company in a competitive market. Its good price will always be the basis rather than the preference or opinion of a person or aRead MoreCustomer Relationship Management ( Crm ) Practices At Janata Bank Limited ( Jbl ) Essay1358 Words   |  6 PagesFindings Analysis In finding analysis part, I will discuss Customer Relationship Management (CRM) practices in Janata Bank Limited (JBL). the objective of JBL is to become the largest commercial bank in Bangladesh by playing significant roles in the banking sector as well as, in the National economy. In 2014, JBL held 7.60 percent of total deposit and 6.05 percent of total loans and advances of the country’s banking sector. Strategic Priority 1. Ushering in customer-friendly culture throughRead MoreCustomer Relationship Management ( Crm ) Practices805 Words   |  4 PagesIn finding analysis part, I tried to discuss Customer Relationship Management (CRM) practices in Janata Bank Limited (JBL).Information added to this research paper largely based on selected Questionnaire and annual report of Janata Bank 2014. Every branch of Janata Bank boldly stands by the objective of Janata Bank to accomplish it. The objective of JBL is to become the largest commercial bank in Bangladesh by playing significant roles in the banking sector as well as, in the National economy.Read MoreSources Of Finance For Synergy International Limited1627 Words   |  7 Pagessources of finance for Synergy International Limited to enable the company to invest in new machinery, at a cost of approximately  £225,000, in order to manufacture mobile phone covers for the Samsung S7 Edge. Also included in this report, are the information needs of the different decision makers. There are long term external sources of finance that Synergy International Limited could access; they could issue preference or ordinary shares although there would be issue costs. Finance, in the wayRead MoreHealth Care Essay774 Words   |  4 PagesCapital Budgeting Process Chrystina Health Services Finance April 1, 2012 Organizations that decide to issue bonds generally go through a series of steps. Discuss the six steps. These are the six steps that organizations use when they are issuing bonds. These steps are: 1. â€Å"The healthcare borrower updates its capital plan, measures its debt capacity and attempts to get its house in order† (Zelman, McCue, amp; Glick, 2009) 2. â€Å"The healthcare borrower selects key parties involved