Documents Required for Project Finance:
Firm/ Constitution:
1. KYC
2. 12 months Account Statement
3. 12 Months GSTR-3B
4. Last 3 years Financial
5. Property Papers
6. Project Report
7. Quotations of Machine
Promoters:
1. KYC
What is Project Finance?
Project Finance refers to a type of financing that provides funds to cover a company’s day-to-day operational expenses and short-term financial needs. It is specifically designed to manage the working capital cycle of a business, which involves the conversion of current assets into cash to meet short-term obligations.
Project finance is the capital required to finance a company’s daily operations, such as purchasing inventory, managing accounts receivable, paying salaries and utilities, and covering other operating expenses. Insufficient working capital can lead to liquidity problems, hinder business operations, and impact growth opportunities.
Project Finance helps businesses bridge the gap between the cash outflows (expenses) and cash inflows (revenues) during their operating cycle. It ensures that a business has enough funds readily available to meet its short-term obligations and maintain smooth operations. Here are some common forms of project financing:
Key Features:-
Overdraft Facility:
Cash Credit:
Trade Credit:
Invoice Financing:
Inventory Financing:
Working Capital Loans:
The specific form of working capital finance suitable for a business depends on its industry, financial position, cash flow patterns, and requirements. It is important for businesses to carefully assess their working capital needs and choose the appropriate financing option to effectively manage their day-to-day operations and maintain financial stability.
