The Project Finance Company

Making Your Plans Reality

NewVista Financing is a leading project finance company that sources loans and financing for companies seeking funding for their large projects internationally.

Our lender company provides project finance loans for many purposes including energy project finance for large utility scale solar, wind, hydroelectric, geothermal and more.

If you need project financing for construction of large developments including resorts, hotels, stadiums, apartment buildings, condos or large commercial and industrial buildings, and more, we can help you secure a loan that fits your needs.

Our project finance company can also help you with infrastructure financing to build roads, bridges power and transportation systems to expand viability of your region.

Many times with large projects, you also need financing for heavy equipment and we either build this into the project finance loan or provide you a separate loan just for your heavy equipment needs including dozers, loaders, graders, excavators, cranes, heavy haul trucks and more. Finally, we can help with the largest of equipment including ships and airplanes.

Though we are focused on project financing in the U.S., we can also fund projects in Canada, the Caribbean, Europe, and parts of Asia. Please Contact Us for your global expansion needs.

How Are We Defining Project Financing?

Financing or loans for projects that are seeking a minimum funding of $10M USD, a maximum in excess of $10B and have strong real estate and/or equipment collateral. The funding is typically in the form of a loan (debt) however an equity stake in your project/company is occasionally accomplished.

Project Financing Structure - Debt and Equity

Most large project financing is structured with some combination of debt and equity. We focus on the debt financing while occasionally bringing on an equity partner for large multi-family projects.

By raising equity or bringing cash to the table, you are in a stronger position to get your project approved for debt financing. Debt lenders for projects like to see that you are investing monies into the project so that the risk is shared and you are committed to making the project profitable.

Top Factors for Project Finance Approval

1. Matching project finance lenders with their area of interest. Lender's appetites vary depending on their experience and what they feel most comfortable with from an industry, growth, location and overall risk perspective.

Some have narrower niches and may only provide funding for energy projects in the U.S. for example. Others may be open to almost any niche in multiple countries. So matching your project finance loan request with the appropriate project finance company is very important. Naturally, submitting your loan request to a company that does not fund in your niche is a waste of time.

One of the benefits of our project finance services is that we do the work of matching your project with our funding partners which is a long list of lending investors and loan providers for large project financing serving most niches (see above).

2. As mentioned, the more you bring to the table for investment into the project through your own cash or monies raised from equity investors, the greater chance you can receive a loan for your project. This comes in the form of what you have already invested in your project and also what you will be investing in the future.

For example, if you are building a new commercial development and already own the land you will be building on, you have already invested in the project and are in a stronger position for loan approval. This also means that your project is closer to completion and profitability than one that has not acquired the land yet.

3. Your presentation - do you have a well thought out business plan and are you presenting in a clear, concise and comprehensive way with your executive summary? If you have not prepared a compelling business plan, can you expect a project finance lender to provide you with $10M+?

Financial and Collateral Strength - In lieu of any interest reserves provided by the lender, what sources of cash do you have to make the loan payments while your project is being constructed? Does your management team have a high net worth or not?

In event of default on the loan, what is the collateral (land, buildings, equipment, business good will, intellectual property, etc.) worth and how strong is the market to sell this collateral or takeover the operations?

4. Experience and Quality of the Management Team - A project finance lender will be asking what experience the management team has had with developing a project like or similar to what they are proposing now and to what extent was it successful. More experience means a higher chance of success with your new venture and less chance of default on the loan.

The lender will also be asking about the previous experience and success of the management team in general - do they have the education and track record in the industry for this new project?

5. Profit Potential - Simply put, is this a profitable venture and do the proforma financials make sense? Based on comparable projects, is this project in an industry and market location that has a high chance of profitability and to what extent?

6. Your Attitude and Approach for the Funding Process - Here is an inside tip that you will not hear anywhere else. At the same time it is so common sense, you are not likely to think about it. This can easily make or break the deal for you in dealing with lenders for project finance.

So many times people come to us asking for money with the following attitude and approach:

a) They think they are entitled to a loan approval regardless of the strength of the project.

b) They are not forthcoming with information that is requested from the lender and try to hide information that they don't want the lender to see.

c) They try to control the lending process and dictate to the lender how the lending process will work, what they will provide, the timeline involved, etc. What they don't realize is when a borrower comes to a lender asking for millions of dollars while trying to tell the lender how to do it's job hurts their chances of approval. By getting in the way of the necessary steps of the loan process, it makes it impossible for the lender to accurately assess the risk in the process and move forward.

Borrowers need to come to a lender with confidence based on the strength of their project and not by how much they think they can manipulate the lender and the lender's process.

Project finance lenders are no different than any other person - they want to work with people that are pleasant and respect them enough to let them do their job.

Important Note: These are some of the top factors above. Each lender will have their own emphasis of what is most important to them and why. It is great if you have most of these covered but if you do not, it does not mean that you will not qualify for a project finance loan.

You may have strengths in some areas that will be beneficial enough even when you have weaknesses in others. Also note that their are other financial instruments and equity investors that can be used to put you in a stronger position for approval.

Our Process to Secure Project Financing

Step 1: Contact us outlining your project.

We promptly review your email information and let you know if we have any follow up questions or whether or not there is an initial fit to move forward.

Step 2: If we have an initial fit, we will request an executive summary for your project. Once we receive your executive summary and it meets our approval, we will introduce you via email to one of our Funding Managers who will work with you to hopefully get your project funded.

Step 3: Our assigned Funding Manager will collect financials from your company and review with our underwriters. Once reviewed, you will be issued an approval or a denial. If you are approved, a letter of intent/term sheet will be issued that outlines the terms of the loan and the conditions required to close the loan.

Step 4: All the agreements are signed, conditions are met and a date for closing is set.

Step 5: The loan is closed and you receive your funds for the project.

Please note that if you need interim funding while you are preparing for your project finance, we have a merchant finance program that may help you.

Non-Recourse Project Financing

Most all developers of large projects do not want to be liable for their personal and business assets in the event they default on the loan. Non-recourse means that the borrower wants the loan structured so that the lender does not have access to their personal or business property upon default of the loan.

Some lenders can provide non-recourse financing and others will not. We have some programs that offer non-recourse project financing on a case by case basis. Contact us with information in Step 1 below and will see what we can do for you.

100% (one hundred percent) Project Financing

100% project financing is one in which the lender or equity partner will provide funding for 100% of the project cost. In order for a funder to be willing to provide 100% financing, the project needs to be very strong meaning it fits all lender criteria that they deem important to them including the project type, location, ROI, management team, experience and more.

100 percent financing of course puts the lender at greater risk with minimized risk for the borrower. Occasionally, one hundred percent financing can be achieved with other instruments that help secure the loan in the event of default including security bonds.

Another way to structure a deal so that the borrower can achieve 100% financing is with the help of a third party that pledges a financial instrument known as a Stand By Letter of Credit (SBLC) issued by a bank on behalf of a person or business entity stating that the bank account has sufficient funds to meet the requirements of the lender for a down payment for example. In this scenario, the monies for a down payment or lender security is provided by a 3rd party and not from the borrower so that 100% financing is achieved.

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