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Project Funding means a financial supply for the project, provided by its sponsor in order to pay for consumable materials, workforce, equipment, overhead costs, and other items to be acquired for a successful project accomplishment. A project can be accomplished at costs of a project sponsor which directly contracts out necessary amounts of currency to the project executers (so a project customer just acquires the specified project results at certain price, whether fixed or flexible), or a project funding can be provided by a committee of investors who fund it with a help of loans (most commonly these are non-recourse loans, which are secured by the project assets and paid entirely from project cash flow).
Normally, project funding is calculated and provided based upon the anticipated cash flows of the project, and it is operated through a special purpose entity that is created for each project – it works like a buffer that shields other assets owned by a project sponsor from the detrimental effects of a possible project failure, so the general business assets (or corporate creditworthiness) of the project sponsor stays protected against critical negative influence of a project’s results.
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VIP Task Manager |
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