Investment Financing
Investments play an important role in any business.
They are a key factor in carrying out business activities, improving product quality, reducing costs and ensuring the competitiveness of a modern enterprise.
Investment financing at the global level can influence the gross domestic product of entire countries, reduce unemployment and ensure macroeconomic equilibrium.
Finally, economic growth is achieved by investing in specific activities.
Investments in promising new facilities such as solar power plants, wind farms or waste processing plants provide the investor with substantial income and capital gains over the long term.
A feature of any investment is its return to the investor in an increased amount.
At the same time, the potential return on investment should correspond to the risk of a particular project.
The success of an investment depends on many factors: the economic situation, the efficiency of markets, access to capital, knowledge and skills for investing, and much more.
All other things being equal, knowledge and skills are crucial for finding successful investment ideas, developing them, evaluating and comparing investment alternatives.
Investment financing and project management is a serious challenge for companies that are implementing large projects these days. Sources of low-cost funds are essential for ensuring the efficiency and quality of projects in such economic sectors as renewable energy, infrastructure, environmental protection, industry and agriculture.
The company Perton Energy Group offers financing of investment projects around the world.
We provide a wide range of services, including financial modeling, obtaining loans from the largest European banks on favorable terms, guaranteeing financing, etc.
The project financing schemes we develop allow companies to implement large projects with a minimum contribution of the initiator (up to 10%).
Contact us to find out more.
Investment financing: principles and options
The nature of the project and the conditions for its implementation determine the choice of instruments and sources of financing for the investment project.
External funding sources can be private or public partners.
The state usually provides funds for the implementation of socially significant projects from the national and local budgets.
The most commonly used investment financing options are bank loans and loans from international financial institutions, syndicated loans, bonds, hybrid securities and others. Partners can be banks, corporate and private investors, international financial institutions and others. Grants from European foundations and international programs are also an important source of long-term financing for projects in the European Union.
Factors influencing the choice of financing options:
• Risks. It is important from the very beginning of a project to clearly assign responsibility for its success or failure.
• Financing as a package of services. The provision of comprehensive services related to the allocation of money, construction, equipment supply and operation of a new facility can be carried out by one large company.
• Benefits for the funder. Lending involves the payment of interest. If investors finance a specific project, they expect a certain return.
• The right time for financing in the context of the life cycle of the company and the specific investment project.
• The technical level of the companies participating in the project.
Investment financing is based on several basic principles, including the principle of division of competences, the principle of equality of participants, the principle of additional financing, the principle of reasonable concentration of funds, and some others.