Project Development Funding
You have navigated to our OLD website.
Please visit our new website HERE.
New Funding Concepts Project and Infrastructure Financing is revolutionizing the worldwide need for Infrastructure Development.
New Funding Concepts Venture Capital Funding offers:
v 95% LTV for most new projects
v Interest Rate of 5% or less
v NO JV Component
v Debt Repayment only required when your project is generating income
The New Funding Concepts Requirements
v A complete business plan providing a full description of the proposed project and a current feasibility study and financial appraisal. NOTE: We do NOT do start-up funding. The company has to be cashed up to a certain percentage so that we are fully confident in their ability to perform. We have no desire to help a company get off the ground. We want solid companies that have at least been able to raise some capital, this then allows us to have a certain confidence in the investment as other groups have already invested and could include the owners.
v A deposit of 5% is required to complete the funding proposal - Escrow to NY Law Firm, escrow is held under their name, however the client does not have to escrow funds - they can block them in their account to Funder by SWIFT MT 760 for 13 months if they so wish, this will normally cost 1% of the value of the SWIFT. So let us say someone requires $100m USD and we require $5m USD as their POF then the SWIFT should cost them about $50,000 USD, an escrow on the other hand will cost them about 2-3%. DO the SWIFT MT760 then, cash never leaves their account and is only blocked to us for 13 months then released back to the client at the end of the year.
v Client can draw funds 90 days after placing their deposit, in some cases this can be as low as 30 days dependant on the amount of drawdown client requires
v Total outlay is 5% of total project costs and 90 days for first payment.
The New Funding Concepts Approach
“Funds First” requests will be accepted but only when funds are first available to client, usually within 90 days of Bank Comfort Letter from New Funding Concepts
v Funding is available from $20m USD to $1 billion USD (more is available on request). Interest Rate APR’s are set at 3% - 5%, an interest holiday is built in so that the client pays no fees to New Funding Concepts until project is handed over and generating income
v Developer will NOT be required to supply Performance and Completion Bonds. Fund disbursements are controlled by the client against a financial monthly model and agreed with New Funding Concepts
v Financial model and drawdown agreed in principle prior to first draw, client knows from day one funding availability. Contingency funding can be agreed when required
v The client has no need to produce any Standby Letters of Credit or Insurance bonds. Client can pay their project insurance directly from drawn funds.
v Completion of Non Disclosure-Non Circumvent and Fee Agreements to be forwarded to the client upon receipt of complete project information as indicated above.
v Broker fees are paid directly by the client from the drawn down funds.
v Project funding is available throughout the term of the construction phase, we pay as we go. This guarantees a good service and we will put into place very stringent non-performance clauses to ensure that failing deadlines are the contractors problems to solve and not the project owners
v You may ask us to invest with you and we will convert up to 20% of the loan into 20% equity
v Approval usually takes 15 days from signing of agreements and placing of 5% deposit
v Upon acceptable receipt of the above items a Letter of Commitment will be issued subject to a bank comfort letter. Upon execution of the Letter of Commitment and verification/approval of the BCL, funds will generally be available within a maximum of 90 days.
