New project financing refers to arranging financial support for setting up a new business, launching a new project, expanding operations, or executing a large-scale business plan. This type of financing is generally required when a project involves significant capital investment and long-term planning.
New project financing focuses on the feasibility, viability, and sustainability of the proposed project rather than only the borrower’s existing financial position. Financial institutions evaluate whether the project can generate sufficient cash flows to meet repayment obligations over time.
As a consultancy firm, we assist clients in understanding new project financing requirements, documentation, lender expectations, and regulatory considerations. We do not provide funding directly. All project financing is sanctioned and disbursed solely by banks or financial institutions as per their internal credit policies and regulatory guidelines.
TYPES OF PROJECT FINANCING
- New Business Setup
Financing required for starting a new business, including expenses related to land, building, machinery, equipment, technology, and initial working capital. Suitable for startups and first-time entrepreneurs.
- Manufacturing Projects
Financing for setting up manufacturing units, factories, or production plants. These projects usually involve machinery installation, production planning, and long-term operational setup.
- Service Sector Projects
Projects related to healthcare, education, IT services, hospitality, logistics, consulting, and other service-based businesses. Funding focuses on infrastructure, technology, staffing, and operational readiness.
- Expansion and Capacity Enhancement Projects
Used by existing businesses to increase production capacity, add new product lines, expand facilities, or enter new markets. Financing supports both capital expenditure and incremental working capital needs.
- Infrastructure and Construction Projects
Large-scale projects involving construction, real estate development, or infrastructure creation. These projects require detailed planning, approvals, and phased funding.
KEY FEATURES OF NEW PROJECT FINANCING
- Funding based on technical feasibility and financial viability of the project
- Requires detailed project reports with realistic financial projections
- Funding structure may include term loans, working capital facilities, and promoter contribution
- Repayment structure aligned with projected cash flows of the project
- Moratorium period may be available during project implementation or initial operations
- Loan tenure varies depending on project size and nature
- Interest rates determined by project risk profile and lender policies
ELIGIBILITY CRITERIA
- Promoter background, experience, and credibility
- Technical feasibility and commercial viability of the project
- Projected cash flows and profitability estimates
- Credit profile of promoters or existing business
- Adequate promoter contribution as per lender norms
- Compliance with statutory, regulatory, and environmental requirements
Meeting eligibility criteria improves approval chances; however, final eligibility is determined by the lending institution after detailed evaluation.
HOW OUR CONSULTANCY HELPS
- Understand the project concept and funding requirement
- Assist in preparing detailed and bank-ready project reports
- Align financial projections with lender expectations
- Guide on documentation requirements and compliance readiness
- Explain lender evaluation process and general timelines
- Support clients in presenting projects in a structured and professional manner
We act purely as an advisory partner. Project financing approval and disbursement decisions are taken entirely by the lending institution.
IMPORTANT CONSIDERATIONS
- Realistic assessment of project feasibility and market demand
- Adequate promoter contribution and contingency planning
- Long-term repayment obligations and cash flow management
- Project implementation timelines and execution risks
- Sensitivity of projections to market and operational changes
Careful planning and realistic projections help reduce financial risk and improve project sustainability.
CALL TO ACTION
Speak to Our Project Financing Consultant
DISCLAIMER
We act solely as a consultancy and advisory service provider. We do not sanction, approve, or disburse project financing. Final funding approval, interest rates, tenure, and terms are determined exclusively by the respective bank or financial institution in accordance with applicable regulations and internal policies.