As the name suggests, project finance deems a contract as being bankable collateral. Capital can therefore be raised against the value of the contract. The caveat is that the contract must either be with a recognized commercial entity or government department.
Winning an contract is one thing—financing it is another. You may already have pledged assets as collateral for other loans and have insufficient capital to sustain existing works or take on new projects. Because contract finance is transaction-based, it can provide you with the capital to:
- Acquire/manufacture goods and/or equipment
- Cover costs associated with mobilization
- Meet fixed and variable expenses such as wages, insurance, transport/shipping, etc
- Fulfill/complete the requirements and conditions of the contract
Why AR Trade Finance?
Whenever you begin negotiations or preparation of a tender your first consideration is financing. What will your cash flow needs be throughout the contract, from initial costs to final delivery?
AR Trade Finance understands the unique requirements of dealing with large commercial organizations and government departments. We can fund both domestic and international contract deliveries and can also offer our insight and years of experience to enhance your contracting relationships.
This support can shape the way you negotiate future contracts.
Best of all, by partnering with AR Trade Finance, you can grow your business.
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