Funding your International Projects has become more available, but not the way that most developers have been accustomed to over the years. If you are looking for funding for your Development Project Funding or Venture Capital Financing recently, you will know exactly what I mean.
The most effective method for your International Project Financing is a Leveraged Fund Program. The actual mechanics of the Trade Program are proprietary to the Trade Firm organizing the Trade but if you are dealing with a good group you will be able to have confirmation of performance with the Trade Group responsible for generating the funds for your project.
Programs exit where the funds that are needed for the Leveraged Funding Program where the funds are initially held with the client’s own Attorney until everything has been put in place to start the Trade. Once this point has been attained, the funds will be required to be moved to a secure and insured escrow account. Before the funds are to be used under these programs, a bank draft will be issued and held with a third party Attorney as assurance that the funds the client is putting up are safe. In the event of funding not happening as predicted, the bank draft can be cashed and the funds returned to the client so there is no risk of loss of funds.
After this point, within 30 days, the client will receive 100% of the funds they put into escrow and the Attorney holding the bank draft will then be required to return the bank draft to the bank.
The initial funding will happen with 30 days of the escrow funds being returned. The subsequent funds for the project will be disbursed each month for a period of 1 year.
In exchange for the Project Funding, there will be a profit sharing agreement done in place of actual debt servicing.