Project Funding

Project funding is the key aspect when doing any project this is the core funds used to start or expand a current project. There are many ways to fund a project; it could be debt, equity or a combination. Within each there are many different structures some are easier if the company is public which allows for liquid equity. When looking for project funding you want to find the correct funding source that will work well with the company and allow it to grow. As a company you want to give up less than 50% so the current principles still have the power in the project. Sometimes this is not the case depending on what type of project it is and how much money in put in already.

There are many ways to gain project funding through investment groups, hedge funds, high net worth individuals, banks and government grants. We mostly deal with the first three which allows the most flexibility for our clients. A project the needs funding could be anything from a startup to a hotel casino to an expanding company. Most companies that we deal with are already in existence and is revenue producing. If we are not working with these types we are working on hotels or casino that are looking to be constructed or looking to expand. The good part about working with a company that is revenue producing is they mostly have assets and a track record which could prove that with the right amount of funding they can take it to the next level. With a hotel or casino there is the asset of the land and construction. On an existing hotel looking to expand you have both a track record and assets to be put up for the project funding. The more a company has the better the term sheet which will in turn be cheaper money. When you have a public company looking for funding this could be very easy for penny stocks to raise capital due to the liquid market. Most firms want to see the penny stocks trading 2% a day of the asking amount of funding. If this is the case it is very easy for the company to get an equity line of credit or a convertible debenture. Out of the two I feel each has a benefit if the company will pay the debt off fast then I feel the convertible debenture is the way to go. This leaves the fund with no equity and no harm to share price if paid in time. On the flip side if not paid in time they will convert the debt into equity and sell into the market. Although you have the money the share price will drop and your share holder will get hurt. On the equity line of credit your company would go this route if you are a longer time away from making it big. This does no harm to your share price but when you do in fact make it big the fund will have a huge equity piece in your company.

If you are a private company that is revenue producing you can do many different thing but the most popular to gain funding it to go public while raising capital. The most popular ways of going public are through a filing or through a reverse merger. With the filing it is clean you know where all shares and are starting fresh. With a reverse merger you are backing into a shell which many have disgruntled share holders from the old company and this cost much more. If you are looking for project funding of any type feel free to contact us anytime.