What is project finance advisory?
Project finance advisory is professional support for businesses planning a capital investment or funding requirement. It covers assessment of the funding need, preparation of financial projections and models, and organisation of the financial information that lenders and financing stakeholders typically review.
What does it include?
- Financial modelling
- Projected financial statements
- CMA data preparation
- Funding requirement analysis
- Debt serviceability assessment
- Working capital assessment
- Documentation support for lender discussions
What is financial modelling?
Financial modelling is the preparation of a structured, assumption-driven projection of a business or project's financial performance. A model links operating assumptions to projected profit and loss, balance sheet and cash-flow statements so that funding needs, repayment capacity and sensitivities can be examined.
What is CMA data?
CMA data, or Credit Monitoring Arrangement data, is a structured set of past and projected financial statements and ratios commonly requested by banks in India when assessing working capital or term loan proposals. It presents historical performance alongside projections in a standard format.
Who needs project finance advisory?
Businesses planning capacity expansion, new plants or projects, capital equipment purchases, or a revision of working-capital limits. It is also relevant when management needs to test whether a planned investment is serviceable before approaching a lender.
How does it work?
- Understand the project, timeline, capital structure and operating assumptions
- Build the financial model and projected statements
- Assess funding requirement, debt serviceability and working capital needs
- Prepare CMA data and supporting documentation
- Support management through lender queries within the agreed scope
What does it cost?
Pricing depends on the scope, transaction volume, complexity, reporting requirements and engagement model. Navrang Global Advisors provides tailored monthly engagement proposals.
What are the limitations?
Funding approval is ultimately determined by the relevant lender or financial institution. Projections are based on assumptions provided and agreed with management and are not a forecast of guaranteed outcomes. Navrang Global Advisors does not guarantee sanction, disbursement, pricing or timelines.
Frequently asked questions
- What is project finance?
- Project finance refers to funding raised for a specific project or capital investment, assessed largely on the project's own cash flows and serviceability. Advisory support covers the financial analysis, projections and documentation around that funding requirement.
- What documents are generally required?
- Lenders generally review historical financial statements, projected financials, a project report or financial model, CMA data, details of the proposed capital expenditure, and supporting entity and promoter documentation. Exact requirements vary by lender.
- What is financial modelling?
- Financial modelling is the preparation of a structured, assumption-driven projection linking operating assumptions to projected profit and loss, balance sheet and cash-flow statements, so funding needs and repayment capacity can be examined.
- What is CMA data?
- CMA data is a structured set of historical and projected financial statements and ratios commonly requested by banks in India when assessing working capital or term loan proposals.
- Can you guarantee funding?
- No. Funding approval is ultimately determined by the relevant lender or financial institution. Navrang Global Advisors can assist with financial analysis, projections, documentation and funding readiness.