Project Financing
Project Financing is a funding method in which lenders provide money for the development of a project solely based on the projected cash flows, with the project`s assets, rights, and interests as collateral.
Benefits
Project financing funds specific projects based on their projected cash flows, using the project`s assets and revenue as collateral.
Frequently Asked Questions
What is meant by project financing?
Project financing funds a project based on projected cash flows, with the project`s assets, rights, and interests as collateral.
What is the difference between funding and financing a project?
Funding refers to securing capital for a project, while financing involves obtaining money through borrowing or investment to support project activities.
What is the cash flow model of a project finance?
The cash flow model of project finance projects the inflows and outflows of cash over the project`s life, used to assess its financial viability and funding needs.
Key Takeaway
Project Financing funds specific projects based on projected cash flows.