Construction Financing
Obtaining a commercial mortgage or construction financing can be challenging, even though a building or project is tangible and has a certain value. Besides understanding all aspects of the asset, a lender must have confidence in the servicing of the debt and the strength of the company making the commitment.
There are different types of lenders offering varied terms and conditions, and willing to take on more or less risk. To achieve the lowest cost with the least amount of personal risk, you must provide the lender with a thorough understanding of all aspects of the building or project, the history of the company and principals behind the project, the cash flow timeline and potential, and all of the potential risks.
The Sumex team is experienced in dealing with all types of lenders and has worked on projects with a broad range of features and risks. We have the knowledge and the experience to help you put your best foot forward, and to help you in secure the right financing for your building or project. At Sumex we have more ways to Yes!
CONSTRUCTION FINANCING
Construction financing, also known as project financing, refers to the financing of long-term infrastructure, industrial projects and public services based upon a non-recourse or limited recourse financial structure. Project debt and equity used to finance the project are paid back from the cash flow generated by the project. The project's assets, rights, and interests are held as secondary security or collateral. Construction financing or project financing is especially attractive to the private sector because major projects can be funded off from a balance sheet. There are some common elements that lenders or private investors look for when deciding whether or not to invest in a project. The key to success, however, in securing the funding is to understand the project well, including the cash flow potential, and the lenders’ expectations. Matching a project with the right lenders and having a well-documented project are the crucial elements key components for achieving success.
