Welcome to the world of thinking outside the bank.
Too many projects are held up because your banker just said no to your funding request.
Well there is an alternative that can get your shovel ready project underway and it is a funding mechanism known as Monetization Financing.
This type of funding is mad available through major insurance companies from around the world.
They are interested in funding larger projects that will have terms up to 25 years.
this is long term, patient money.
They will even allow payment deferrals for up to 7 years while the project is built and gets up and running.
This just opens one's mind to the possibilities this type of funding could satisfy.
Municipalities can use this funding, since it is a private placement, it will not affect their ability to borrow through the bond markets.
Even though, the underwriters do look at their Credit Rating, the amount that is borrowed is not made public.
This financing vehicle is well tooled to assist developers in getting projects off of the ground quickly.
You do not have a banker hanging over you for every t to be crossed and i to be dotted.
You do not have the extensive paper gathering that the bank would need to make a decision.
This is simple to use and understand.
the lending is based on the Credit Rating of the Obligor to the contract that is being monetized.
Quick example, a city is building a Waste-to-Energy Plant to handle their garbage tipping needs.
The plant will cost $100 million dollars, but he city needs it to handle their garbage since the landfill is almost full and to get another one opened up would be political suicide in today's environment.
The plant will save the city millions each year as they also share in the profits from the plant that sells off recyclable good, creates a diesel product and also generates cheap electricity that the city uses to further reduce their power costs for the city.
The loan is funded directly to the developer and the city provides a guarantee for the minimum monthly payments.
That proves not to be an issue since the payments are deferred for 3 years while the plant was built and the savings alone more than cover the payments.
Actual projects will need to be looked at on a case-by-case basis to crunch the numbers to see the great savings the city would receive.
And this is only one same sample of how monetization financing can fill the void left by the bank.
Contact the author of this piece directly to discuss of this financing vehicle can help save your project from cancellation.
Too many projects are held up because your banker just said no to your funding request.
Well there is an alternative that can get your shovel ready project underway and it is a funding mechanism known as Monetization Financing.
This type of funding is mad available through major insurance companies from around the world.
They are interested in funding larger projects that will have terms up to 25 years.
this is long term, patient money.
They will even allow payment deferrals for up to 7 years while the project is built and gets up and running.
This just opens one's mind to the possibilities this type of funding could satisfy.
Municipalities can use this funding, since it is a private placement, it will not affect their ability to borrow through the bond markets.
Even though, the underwriters do look at their Credit Rating, the amount that is borrowed is not made public.
This financing vehicle is well tooled to assist developers in getting projects off of the ground quickly.
You do not have a banker hanging over you for every t to be crossed and i to be dotted.
You do not have the extensive paper gathering that the bank would need to make a decision.
This is simple to use and understand.
the lending is based on the Credit Rating of the Obligor to the contract that is being monetized.
Quick example, a city is building a Waste-to-Energy Plant to handle their garbage tipping needs.
The plant will cost $100 million dollars, but he city needs it to handle their garbage since the landfill is almost full and to get another one opened up would be political suicide in today's environment.
The plant will save the city millions each year as they also share in the profits from the plant that sells off recyclable good, creates a diesel product and also generates cheap electricity that the city uses to further reduce their power costs for the city.
The loan is funded directly to the developer and the city provides a guarantee for the minimum monthly payments.
That proves not to be an issue since the payments are deferred for 3 years while the plant was built and the savings alone more than cover the payments.
Actual projects will need to be looked at on a case-by-case basis to crunch the numbers to see the great savings the city would receive.
And this is only one same sample of how monetization financing can fill the void left by the bank.
Contact the author of this piece directly to discuss of this financing vehicle can help save your project from cancellation.
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