Exchequer Risk Management
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Corporate and Project Finance

Corporate finance is a low-cost alternative to debt or equity for financing your business.

What is corporate and project finance?

Corporate and project finance (also known as corporate and project funding) is a low-cost alternative to debt or equity for financing your business. A corporate sponsorship is most often a contribution of goods, in-kind services or money given by a company to a non-profit organisation to fund a specific project or event. In return for the funding, the corporation becomes a sponsor, which is very similar to becoming an advertiser. The difference is that rather than paying for an ad, the sponsor pays a fee for the privilege of aligning its name and brand with the entity it promotes.

What can you use project finance for?

Funding for Projects and Events

Organisations often rely on monetary donations from corporations to fund the various projects and innovations they produce. The advantage of receiving corporate sponsorship funding is that the organisation gets the money it needs and, in turn, typically only has the responsibility of mentioning the sponsor’s name through signage and noting the company’s support and participation in its promotional materials. In some instances, an organisation may also give the sponsor the opportunity to speak, distribute company content or gain more open access to the organisation.

Project finance can benefit both the corporation making the financial contribution and the organisation receiving the donation through a resulting positive affiliation. For example, a large medical supply company that funds a community health fair, has the opportunity to promote itself as being a good corporate citizen. At the same time, the organisation hosting the event gets a boost of credibility by showing it has the support of large and influential companies.
New companies that want to get their name and product in front of the public often choose to do so through corporate and project funding. This approach allows the company to align its brand with an established organisation and promote its commitment to the community at the same time. The approach can also help corporations reach a target market. For example, a company that manufactures bowling balls would benefit from sponsoring a large bowling tournament while an office supply store may profit from sponsoring a back-to-school fair. Many corporations choose the types of organisations they fund based on what is relevant to their particular product, industry or market.
In some cases, corporate sponsorship funding can have positive tax implications for the companies making the donation and the organisations receiving the funding. A tax adviser can determine the extent to which a company can deduct its contributions.

Why is corporate and project finance important?

Most businesses that come into the market need funding, and if there weren’t any method to raise funding for these companies, they would fail soon after starting. For the amount of money needed for a company to be successful is of course going to be financially demanding. That’s why corporate and project funding services that we provide are more in demand than you think.

Corporate and project funding is not only for start-ups to grow, it is also used for other advantages, such as sales, marketing, public relations, and hiring key staff. Because of this, most start-up businesses make every effort to raise funding. However, since that can be difficult and time-consuming, corporate and project finance can provide the right investments and sponsorships to give you a head-start and maximise success.

Corporate finance can help you and your business raise the capital you need, and provide investments and sponsorships to give you a head-start and maximise success.

For more information, talk to our team of Experts

What are the benefits of corporate finance?

Technically speaking, corporate funding is a cheap alternative to equity or debt funding. Instead of going to a bank or dealing with shareholders, you can rely on corporate and project funding sources such as:

Tax incentives

Corporate funding should always be used to help a company grow as well as fulfil plans and goals. On a corporate level, tax incentives are cash injections aimed at helping a business grow and expand. These incentives can be used for research and development, finding educated employees, or improvement of undeveloped areas of a company.

Zero-interest loans or even low-interest loans are some of the best forms of debt you can find. It is important to know that usually there is no grace period, and all the monthly payments are tightly locked to a specific date. These strict conditions are expected since there is no interest to pay back.
Corporate grants can be offered to start-ups and small companies, as way to aid them in their growth. There are two types of corporate grants: • private grants • public grants Private grants are usually given to companies through an internal grant program. On the other hand, public grants are usually made through foundations, and all the information is accessible to the public. That means you can easily find out what the money is for, to what company it goes, etc. Grants are also non-refundable, and they are a good example of corporate funding with a high percentage of return on interest (ROI).
Fundraisers are events created with the purpose of gathering money from companies to aid the development of a business. Some examples of fundraisers are: • Profit donation – a company gives away a part of their profit to support another company. This is also a type of grant funding. • Selling merchandise – retail companies often offer a possibility to sell merchandise of other companies in order to help them increase sales. They donate their offices and share customers.

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    Corporate and Project Finance FAQs

    How much funding could I generate?

    To help maximise the level of funding for your business is dependant on understand your current financial situation. This would mean assessing the different types of assets within your business, while also understanding the plans for the future.

    The cost is very much dependent on the nature of the business situation and our clients requirements.

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