Definition: [ˈprɑːdʒekt fəˈnænsɪŋ] is a way to attract the long-term commercial support of large projects, which is based on a loan for the cash flow generated directly by a certain proposal. A specific feature of this investment is sharing of risks between project participants to assess costs and income. Unlike syndicated lending, it has an address-targeted direction and is accompanied by the development of innovative technologies or products. Its main advantage lies in the ability to concentrate significant cash resources for a certain purpose with a significant reduction in risk due to a large number of participants in the agreement.
Project financing in a Sentences:
- The future of the construction company depends on the chances of obtaining project financing.
- Project financing is a real salvation for start-up businessmen who do not have large funds.
Synonyms and related words: proposal finance, venture finance, task finance
