Attraction of bank loans and investments viola-funding October 2, 2023

Attraction of bank loans and investments

Investments projects and bank loans
investments projects and bank loans.

Companies that can attract large investments projects and bank loans most often become leaders in the field of modern technologies, applying innovative solutions and progressive methods of business management. In the context of growing global competition, the ability of a business to successfully implement capital-intensive projects, increase production and sales, and control investment risks are of great importance.

There are no miraculous recipes for business growth, but a competent financial policy and effective attraction of investments for the implementation of large projects have a positive effect on the development of companies in the long term.

Viola Funding Limited provides large long-term loans for businesses on favorable terms, organizes project finance (PF) for large investment projects.

We also offer professional advisory services for European and foreign companies on any issues related to the implementation of investment projects.

Our clients include dozens of companies from the EU, USA, Latin America, Africa, East Asia and the Middle East, successfully operating in sectors such as renewable green energy, mining and processing of minerals, oil and gas sector, agriculture, infrastructure, industry and tourism.

We propose to follow global trends, applying the achievements of financial engineering to improve the results of commercial and industrial activities.

Ways to attract investments and bank loans for large business

Since attracting investments projects and bank loans is considered as a step-by-step process with a strictly defined sequence of actions, we have formulated two possible schemes for financing business projects, depending on the initiator of a particular project (either the investor or the owner of the project).

In recent years, effective investments projects and bank loans attraction has become an increasingly difficult task not only for developing countries, but also for developed industrial markets.

At the same time, they use terms such as “growing markets”, “mature markets” or “promising markets.” On the opposite side, there are “high risk markets” or “declining markets”. Each of them dictates specific requirements to investors.

The investment is beneficial for both parties, including the investee and the party offering additional capital. A company that attracts foreign investment can count on outstripping growth in key indicators, while capital providers are aiming for high returns, optimizing operations and reducing costs.

The hierarchy of specific business requirements for investment activities may vary depending on the type of investor, the sector of economic activity, a specific country and type of market, the duration of the planned investment project, as well as the stability and predictability of certain conditions.

Attracting foreign investment and bank loan for large projects

The importance of foreign investment has increased significantly in recent decades, when the developing countries rapidly integrated into the global economy and required a colossal flow of technological and financial resources to ensure continuous growth and market saturation.

It is important to distinguish between public and private foreign investment originating from different sources. Public investments include, inter alia, loans that one state or group of states provides to its foreign partners. Private investment means all funds that private firms, companies or citizens of one country provide to their partners from another country. These relations are governed by the relevant international treaties applying the principles of international law.

Investment of resources that ensures constant participation in the business, thanks to which the investor retains control over investment projects. According to World Bank, the largest volume of foreign direct investment in the world.

Foreign direct investment (FDI) currently accounts for a significant proportion of foreign investment.

The main strategies for companies to enter the international market.

Export strategy: A set of activities that are implemented by foreign companies to enter the foreign market with the offer of relevant goods and services.

Cooperation agreements: Conclusion of agreements with foreign companies, according to which the investor provides his tangible and intangible assets (for example, technologies, patents and brands) in exchange for remuneration in various forms.

Viola Funding Limited, an international financial company based in Guernsey Channel Island is ready to offer professional service for investment projects of any format around the world.

We provide long-term loans for the implementation of your large investment projects, organize project finance and act as guarantors in international transactions.

Our highly qualified team provides a full range of services for your overseas project.

Sources of funds for business: bank loans and other financial instruments

The obvious solution for most companies for large investments projects is bank loans, but borrowers face problems at the stage of application. The precarious financial situation, unfavorable market conditions, lack of sufficient liquid assets to provide collateral – all of the above scares off financial institutions and significantly increases the cost of borrowed funds, making the implementation of projects less profitable.

In the post-crisis period, very few companies have sufficient internal resources that allow them to safely carry out investment activities, especially when it comes to large capital-intensive projects in the energy, infrastructure, oil and gas sector or heavy industry.

Each business project requires individual financial solutions, depending on the purpose of financing, the timing of the return of funds or other factors.

1. Financing business from internal resources. While this may seem like the simplest solution, in practice it comes with some risks. These risks are associated with the need to regularly allocate funds for the company’s day-to-day operations. Overuse of this source of business financing leads to financial liquidity problems.

2. Bank loans to replenish working capital. This is a basic and fairly simple solution for entrepreneurs who want to further strengthen financing of current business expenses without the risk of suspension of investment projects.

Although lending to working capital is not directly related to the implementation of investment projects, companies may at any time experience difficulties with working capital and need this kind of financial products.

Usually, after signing a loan agreement, the borrower receives the required amount to replenish working capital, and the main part of the loan and interest on it will be paid with each subsequent payment. A working capital loan can also be provided in the form of a revolving line of credit on a checking account.

Factoring and leasing to support large businesses

At first glance, factoring may turn out to be a more complex product for the bank’s clients than a loan to replenish working capital.

Leasing is another popular financial product supporting corporate investment. Large companies use leasing to implement capital-intensive projects with a high percentage of the cost of tangible assets (structures, equipment, vehicles, infrastructure, etc.).

Large investment and bank loans from 50 million Dollars for a long term.

The purposes for using such loans can be very different. In particular, the borrower, in accordance with the loan agreement, can spend this money on the purchase of production equipment, building materials, renovation of the vehicle fleet or the purchase of real estate to maintain and expand the work of the company.

Investment loans are becoming more and more popular as the global economy gradually emerges from the crisis.

The most important characteristic of an investment loan for a business is the interest rate, which largely fluctuates depending on the specific investment project, the borrowing company, the requested loan conditions, the term for providing funds, and so on.

Currently, we can observe record low interest rates on long-term loans.

The potential borrower must be confident in the feasibility of the project by presenting any possible outcomes of the project and planning an appropriate strategy for measures to minimize risks and compensate for losses. This is especially true in the case of large international projects.

In general, experts distinguish several types of guarantees, but from the point of view of entrepreneurial activity, the main ones will be the guarantee of prepayment, the guarantee of the lease and the guarantee of the proper performance of the contract.

Clients of our financial company can receive guarantees, that is, the partner’s obligation to make payment in favor of the beneficiary in the event of violation of the terms of the contract, confirmed by official documents.

Such guarantees are widely used in financing large projects, adding confidence to lenders and facilitating the availability of borrowed funds for businesses.

Which investment attraction option is more suitable for your company?

Discuss details with VIOLA FUNDING LIMITED consultants.

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