Private Credit vs. Bank Loans: How Non-Bank Funding Can Fuel Your Business
Project Finance Advisory 101: Structuring Non-Recourse Deals for Big Projects
Non-recourse project finance is a method of funding large infrastructure or energy projects where lenders are repaid solely from the project's future cash flow, not from the sponsors' personal or corporate assets.
Raising capital for a large-scale project—energy, transport, infrastructure, or industrial—isn't like getting a business loan. It’s about structuring risk, aligning contracts, and building a financial model that banks and investors can rely on. That’s what project finance advisory is built for.
How Project Finance Works
In project finance, a new company (known as an SPV or Special Purpose Vehicle) is set up to develop, own, and operate the project. Funding is raised for this entity, and the loans are repaid from its future revenue—not from the parent company’s assets.
This structure isolates risk and enables much larger capital raises. But to make it work, every element must be aligned—from permits to off-take agreements to repayment schedules.
What Does "Non-Recourse" Really Mean?
Non-recourse means that if the project fails, lenders can only claim the project's assets—not go after the developers’ or sponsors’ other companies. This makes it attractive for sponsors, but risky for lenders—so due diligence and structuring are everything.
When to Use Project Finance
- Energy projects (solar, wind, hydro, thermal)
- Large real estate or logistics developments
- Transportation assets (toll roads, ports, airports)
- Public-private partnerships (PPPs)
Key Stages of a Project Finance Deal
- Feasibility: Technical, economic, and legal groundwork is completed.
- Structuring: Financial model, term sheet, and contracts are aligned.
- Financing: Advisors secure debt and equity commitments.
- Financial Close: Legal documents are executed and funds are disbursed.
- Construction & Operation: The project is built and begins generating revenue.
What a Project Finance Advisor Does
- Builds the financial model
- Structures the capital stack (debt/equity blend)
- Prepares documents (pitch, term sheet, info memo)
- Introduces the deal to institutional investors
- Negotiates terms with lenders and sponsors
Why Projects Fail to Get Funded
- Missing permits or licenses
- Weak documentation or model errors
- Unrealistic revenue forecasts
- No anchor investors or off-take agreements
How Financely Helps
Financely supports developers, sponsors, and advisors in structuring and executing project finance deals. Whether you need a lead investor, a credit-enhanced structure, or advisory from mandate to close—we handle the details, connect the capital, and help get your project across the line.
Raising Capital for a Major Project?
We structure project finance deals that banks and funds can say yes to—globally.
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Submit Your Deal & Receive a Proposal Within 1-3 Working Days
Submit your deal using our secure intake form, and receive a quote within 1-3 business days. Existing clients can connect with their relationship manager through our secure web portal.
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Thank you for considering working with us. A nominal fee of US$500 is required upon completion of each form. This fee covers the time and effort we invest in reviewing your submission and crafting a thorough proposal. We receive numerous inquiries and prioritize those that carry this fee, ensuring serious applicants receive prompt attention.
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Submit a RequestProject Finance
Access non-recourse funding for infrastructure, renewable energy, or other capital-intensive ventures. We mitigate capital constraints by isolating project assets and focusing on risk management. Provide your details to receive a structure that drives growth and maximizes returns.
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Submit a RequestOnce we receive your submission, our team will review your information to determine feasibility. If eligible, you will receive a proposal or term sheet within 1–3 business days. Visit our FAQ and Procedure pages for more information.
Disclaimer: Financely provides financing based on due diligence and feasibility. Approval is not guaranteed, and past performance does not predict future outcomes. All terms are subject to review. Financely primarily assists with structuring and distribution. Qualified parties carry out the project if the client approves the proposal.
