Accountancy, asked by animesh7158, 9 months ago

Explain in detail with reasons of what the sectors are or which type of projects are suitable for project finance?

Answers

Answered by sarojkumarpandeylic

Answer:

Project finance is the long-term financing of infrastructure and industrial projects based upon the projected cash flows of the project rather than the balance sheets of its sponsors. ... The financing is typically secured by all of the project assets, including the revenue-producing contracts.

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Answered by gratefuljarette

Type of projects are suitable for project finance

Explanation:

Business is changing very rapidly in this modern world. There is always demand and the supply for commodities across the globe. The business which matches the demand with its supply succeeds in the market.

Project finance also has become a major bridge for theses supply and demand market.

If a trader has 4-5 brands for a specific product like paint , he tends to sell the best brand which provides him good margin , in return theses brands venture into project finance like third party financer who makes the payment immediately for the company and gets the payment from the trader by providing him with 60 day credit period.

These 3 way business plan helps both the trader, the company and also the project financer. These ways business also booms in a positive manner. These should be implemented in every businesses .