Alternative Project Finance Structure is based on bankable assets to be traded on the financial market by licensed/regulated trader or to sell to a private buyer (this option takes more risk). Generally speaking the market has appetite for assets with a face value from minimum 5M – 10M face value, then it is easy to understand that this alternative form of financing cannot work for little investment value projects.
To consider a request for funding a project with Alternative Finance, it needs that the Client shows to have an appropriate finance knowledge and also he must know about how the principal Depositary Trusts and Clearing Corporations works (Euroclear, Clearstream, Bloomberg). He needs to have a basic knowledge about the process of liquidating such assets by converting them into legal tender and which is the role of collateral securities issued by leading global banks. Now, according our experience very often a Client is not fully aware of the process to start an alternative project financing, and this is why we advise that it would be better the lawyer and/or the financial advisor to contact us on behalf of the client company.
Also, the huge number of incapable people – or worse – scammer people who use the Internet to present themselves as able to close a positive transaction concerning bankable asset does not help many project owners to consider seriously the leveraged capital as a standard option to raise funds for their projects or for other private purposes. And these incapable and scammer people are the same people that try to discredit the few professional players on the market who are truly capable of closing this type of financial transaction.