Investment financing

financing and Investments projects in promising new facilities such as solar power plants, wind farms or waste processing plants provide the investor with substantial income and capital gains over the long term.

 Financing and Investments projects at the global level can influence the gross domestic product of entire countries, reduce unemployment and ensure macroeconomic equilibrium.

Investment financing and project management is a serious challenge for companies that are implementing large projects these days. Sources of low-cost funds are essential for ensuring the efficiency and quality of projects in such economic sectors as renewable energy, infrastructure, environmental protection, industry and agriculture.

Investments play an important role in any business.

They are a key factor in carrying out business activities, improving product quality, reducing costs and ensuring the competitiveness of a modern enterprise.

Viola Funding Limited offers financing and investments projects and alongside large-scale business enterprise around the world.

We provide a wide range of services, including financial modeling, obtaining loans from the largest European banks on favorable terms, guaranteeing financing, etc.

Sources of financing for investment business projects

External financing instruments for investment projects are widely used at different stages of development.

Examples of major global financial institutions that finance investment projects include JPMorgan Chase, Goldman Sachs and Deutsche Bank.

Lending for investment projects is based on several principles, such as profitability, maturity, solvency, security and target nature of the loan.

There are different classifications of loans and their application varies from case to case. Depending on the scale of investment projects, we distinguish between short-term and long-term loans.

For long-term loans, usually provided by international financial institutions, they are most often provided to governments or against government guarantees.

Usually the obligations of the parties depend on the stage of the investment project. During the construction phase, when costs are highest and the project is not yet generating cash flows, the risk for lenders is high. This usually requires guarantees of fulfillment of obligations, including those provided by third parties. In some cases, during the operational phase, when income is generated, guarantees may be optional.

Venture funds are looking for projects in the early stages of development.

Optimal source of financing for medium-sized investment projects (usually several million euros). Sharing financial risk. An easy choice for promising new projects.

The project financing schemes we develop allow companies to implement large projects with a minimum contribution of the initiator (up to 10%).

Benefits of Financing and Investments projects for business

In developed countries, project finance is widely used to implement large investment projects.

This option for financing long-term projects (energy, transport, environmental), as well as projects in the field of public services, is based on a financial model without collateral with the repayment of debt from the future cash flows of the project.

Financing and Investments projects offers investors, lenders and other stakeholders the opportunity to allocate costs, benefits and risks in an economically feasible manner by choosing and applying specific financial instruments used for a strictly defined purpose.

Project finance also has certain disadvantages associated with complex and long-term actions to develop a financial package and high costs of these activities.

Investment financing: principles and options

The most commonly used investment financing options are bank loans and loans from international financial institutions, syndicated loans, bonds, hybrid securities and others. Partners can be banks, corporate and private investors, international financial institutions and others. Grants from European foundations and international programs are also an important source of long-term financing for projects in the European Union.

The nature of the project and the conditions for its implementation determine the choice of instruments and sources of financing for the investment project.

Factors influencing the choice of Financing and Investments projects options:

• The right time for financing in the context of the life cycle of the company and the specific investment project.

• The technical level of the companies participating in the project.

• Benefits for the funder. Lending involves the payment of interest. If investors finance a specific project, they expect a certain return.

• Risks. It is important from the very beginning of a project to clearly assign responsibility for its success or failure.

• Financing as a package of services. The provision of comprehensive services related to the allocation of money, construction, equipment supply and operation of a new facility can be carried out by one large company.

Investment financing is based on several basic principles, including the principle of division of competences, the principle of equality of participants, the principle of additional financing, the principle of reasonable concentration of funds, and some others. We propose to consider the listed principles in more detail.

Investment financing is necessarily carried out on the basis of common criteria, formal requirements and restrictions, which are the same for all interested parties.

An investment project recognized by an investor as the most suitable in terms of financing usually has an advantage over other projects for accelerated completion and commissioning.

There are also various classifications of sources of financing for investment projects.

Depending on the origin, funds are internal and external (the latter received from banks, investment funds or other partners).

Based on the organizational structure, all sources of funding can be divided into centralized and decentralized. In most cases, large energy and infrastructure projects are funded from a variety of sources.