Kick Away Debt With A Profit Sharing Project Finance Solution

By Author: Haydy Watson
Total Articles: 15
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Have you been trying to find a finance option for your business project? Typically, the management takes up a loan from banks. However, when the economic conditions are bad, then even the banks are weary about the loss of their money. No matter which part of the world, banks will not be a good way to go.

You need to consider options that may turn out to be much more beneficial for your business. What is the real answer when you need project finance? There are a number of private equity firms all over the world, but not all are competent enough to handle international clients. Such companies must be avoided because they will mostly wile away your time, and your business will not get the needed funds for conducting business. There are specialized firms that can perform such tasks swiftly after analyzing the profitability of the project, and plotting the future payback terms.

They can show references of the work in the past to assure clients of a good deal. Also, they have the strictest privacy policies for those companies that wish to keep their transactions secret from the public’s eye. The references are revealed ...
... to the client’s lawyer to ensure that the deal is clean, and the payment terms are completely understood.

What is the most desirable option available in private Building Loan financing?

The answer is simple when you ask the question; debt is a burden that a business will have to carry on for years. It is a risk because if the management ends up with no profit then they will definitely be on the losing end of the deal. However, there is an amazing possibility that takes people away from the debt based solution.

Eliminating debt servicing is easy with a profit sharing deal. This is completely different from a join venture, where the ownership of certain segments of the business is shared.

In this case of a profit sharing plan, a percentage of the net profits are paid back as the sum which is typically 30% of the profits. This way the finance firm will grant the complete project cost to the business. The term has to be decided in advance, and it can be from three years to ten years. This is dependent on the project, the time taken to complete it, and the time to completely sell off the project after completion. The best part is that the funding will be 100 %.

If you need to contact a commercial loan broker to obtain Project Finance for your purchased or refinance of a Building Loan contact Global Capital Commercial today.