Monday 19 December 2016

Project Financing For The Long Or Short Term - Global Diversified Partners

A key step to finding project financing is being able to present your idea in a way that it attracts the interest of investors.

Your first step is to write in detail what your project is about. By doing this, you will save yourself money and time. Project financing is only possible when the investors have a clear picture of what your project is about. Evaluate your ideas thoroughly and objectively. Additionally, estimate how the funds will be investment and make return predictions. You will be able to attract project financing only when you have your priorities clear.

The issue of the duration of the project financing is another concern. We at Global Diversified Partners always recommend our clients the creation of a business plan that has detailed projections for income, returns and expenses. It is important to distinguish investment needs from operation needs.

Some long term project financing needs are (7 years or more): Purchase of land or buildings, construction, extension, renovation of existing buildings, offices, specific installations like roads, networks, distribution, etc.

Project funding may also be used for investments intended for less than 7 years. In this category we do not include the purchase of long term assets. We are talking about small modification to existing property like heating or air condition systems. Also the purchase of vehicles, patents, stocks or partnerships

Examples of investments with durations shorter than one year are: Inventory of materials or finished goods, cost of software acquisition, costs of research and development, costs of training, publishing catalogs, etc.

Depending on your project and your business plan, your project funding will be long term, medium term or short term.

Depending on the financial needs of your project, you can choose to use your own funds to reduce the amount of project funding needed from external sources. You can also choose use to request funding from your friends and family. If your business is already running, you can choose to use the net income from last year to fund next year's operations.

Long term and medium term investments may be up to 20 years. Under this category we at Daniel Kalenov Global Diversified Partners can find you investments like the acquisition of long term assets or payment to have rights over them.

Short term investments are generally for less than 1 year. They are related to the acquisition of short term assets, or services like factoring, or financial commitments like loans or bank guarantees.

Daniel Kalenov, Global Diversified Partners help people take control of their financial well being by educating them on the benefits of investing in tangible assets and by altering their perception of what “smart investing” means. For the best consultation call 619-500-4235 today!
Learn more about real asset investing, retirement security, offshore diversification, and many other topics, please visit here: http://globaldiversifiedpartners.strikingly.com/

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