1) You can realize your funding plan starting with an investment budget that is less than what is needed to apply to a recourse loan.
As you are aware Lenders ask for a minimum 5-10% of Total Investment Value (equity participation). The equity participation is calculated on the total project investment value, it means that your starting budget must be relevant. It means that huge economic efforts need in the starting phase of the project. Asset Finance funding program can start with a minimum threshold of 10 million EUR/USD/GBP (5 million can be accepted case by case) with the undoubted vantage that the minimum threshold does not increase as the value of the project or the target of the trade program increase but remains a fixed and independent value (whatever the value of the funds the client wants to raise from 10 million up to 3 billion and more).
2) Timing to get a Contract for an Asset-Finance based funding is minimum. Normally after that all requirements are confirmed and the Client passed a positive due diligence, timing to issue a Contract to start the funding program for your wealth enhancement or project funding is around 15 – 20 days. As is evident, there is no comparison with the biblical and uncertain times to get a contract loan.
3) Your Asset Finance funding request must not pass under the evaluation of a Lender. Asset Finance based funding is a process which does not need to comply with an assessment evaluation process through which independent professionals or your Bank Officer asses which are the risks of your funding request and which collateral you are able to offer to back the loan.
4) Raising funds for a project with an Asset Finance based funding program can avoid certain minimum requirements. Indeed, no Lender in his right mind will accept to issue a binding lending terms sheet without certain minimum requirements. Here are just some of the standard requirements for a project loan: proof of land/site ownership, signed off-take agreement, engineering procurement and construction (EPC) contractor agreement, feedstock agreement where needed, the company or SPV, feasibility studies, permits and permissions, LOI, MOU, HOA etc…, financials. An Asset Finance based funding can start without to have ready all or part of the mentioned document list, it gives an impressive vantage about to manage the overall project timing or wealth enhancement plan, the funding phase can start much earlier and the project or the trade program (private placement) will start to release the expected profits much earlier.