Giant Goodness team realizes that Project financing is a loan structure that relies primarily on the project's cash flow for repayment, with the project's assets, rights, and interests held as secondary collateral. Project finance is the funding of long-term infrastructure, industrial projects, and public services using a non-recourse or limited recourse financial structure. The debt and equity used to finance the project are paid back from the cash flow generated by the project. Project finance is especially attractive to us because, as a consortium, we can arrange to organize and provide funding for major projects.
Appropriate project finance candidates that match our criteria include Greenfield projects and significant facility or production expansions. More of these details are found under Giant Goodness Capital Inc, section.
WHAT ARE THE VARIOUS STAGES OF OUR PROJECT FINANCING?
1. PRE-FINANCING STAGE
o Identification of the Project Plan - This process includes identifying the strategic plan of the project and analysing whether it’s plausible or not. In order to ensure that the project plan is in line with our goals as financial service company, it is crucial that we perform this step.
o Recognising and Minimising the Risk - Risk management is one of the key steps that we at Giant Goodness Group focus on before the project financing venture begins. Before investing, we exercise our indisputable right to check if the project has enough available resources to avoid any future risks.
o Checking Project Feasibility – Prior to making a board decision and decides to invest on a project, we ensure to check if the concerned project is financially and technically feasible by analysing all the associated factors.
2. FINANCING STAGE:
Being the most crucial part of Project Financing, this step is further sub-categorised into the following by us:
o Arrangement of Finances - In order to take care of the finances related to the project, the sponsor needs to acquire equity or loan from us as a financial services organisation whose goals are aligned to that of the project.
o Loan or Equity Negotiation - During this step, the borrower and our principals negotiate the loan amount and come to a unanimous decision regarding the same.
o Documentation and Verification - In this step, the terms of the loan are mutually decided and documented keeping the policies of the project in mind.
o Payment - Once the loan documentation is done, the borrower/ sponsor receives the funds as agreed previously to carry out the operations of the project.
3. POST-FINANCING STAGE
o Timely Project Monitoring - As the project commences, it is the job of the project manager our choice to monitor the project at regular intervals.
o Project Closure - This step signifies the end of the project.
o Loan Repayment - After the project has ended, it is imperative that we keep track of the cash flow from its operations as these funds will be, then, utilised to repay the loan taken to finance the project.
