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PROMISING PROJECTS DESERVE FUNDING

The standard definition of Project Finance is “Project finance is the long-term financing of infrastructure and industrial projects based upon the projected cash flows of the project rather than the balance sheets of its sponsors.”

Project Finance is the core of CFPL. We have spent most of our professional lives in gaining the expertise required to successfully execute promising projects. There are numerous ways of arranging finance for infrastructure and industrial projects and we are well versed with them all.

SMEs are gaining importance in India. Almost half of the industrial output and 40% of exports are the handiwork of SMEs. The sector employs 6 Crore people and 13 Lakh new jobs are added every year. Clearly improving the life of SMEs means improving the life of India and it also means that there is tremendous scope for growth and profit of not just the SMEs itself but the financial firms backing promising SMEs too. Industries like Manufacturing, Precision Engineering Design, Food Processing, Pharmaceutical, Textile & Garments, Retail, IT and ITES, Agro and several Service sectors are very promising.

We provide total support to SMEs and other enterprises looking to finance their projects. Not just monetary assistance but management and planning help is provided too. The different types of loan that can be availed for Project Finance are:

  • Cash Credit : is the most used option for Project Finance. It is given based on solid guarantees.
  • Term Loan : Given for purchases of fixed assets and for a fixed term.
  • Factoring : Given without collateral for stabilising the cash flow. Invoice Bill Discounting means giving the loan based upon the money coming into the firm. Purchase Bill Discounting means giving the loan based upon the quantum of money being spent by the firm.
  • Letter of Credit (LC) : Guarantees payment to seller if the shipping documents are presented to the bank within the stipulated time and terms.
  • Bank Guarantee : BG takes the form of Bid Bonds, Security Deposit, Mobilization Advance, Advance Payment and Performance Guarantees. The Bank guarantees payment.
  • Buyers Credit : Importers can get foreign loans to pay the foreign exporter on due date at interest rates very close to the international LIBOR standards.