Project Finance

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 the project sponsors. Usually, a project financing structure involves a number of equity investors, known as sponsors, as well as a syndicate of banks that provide loans to the operation. The loans are most commonly non-recourse loans, which are secured by the project assets and paid entirely from project cash flow, rather than from the general assets or creditworthiness of the project sponsors, a decision in part supported by financial modeling. The financing is typically secured by all of the project assets, including the revenue-producing contracts. Project lenders are given a lien on all of these assets, and are able to assume control of a project if the project company has difficulties complying with the loan terms.

The main objectives of the study i.e. The Project Financing of the XYZ franchisee business are,

·      To study the cost incurred in undertaking the project.

·      To know the sources of financing the project.

·      To study how the project serves the company as a long-term asset in offering computer education in the locality.

·      To study the feasibility analysis of the project i.e. Franchisee Business of XYZ.

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