My OperaTHREE WAYS OF BRINGING PROMOTERS CAPITAL IN A NEW PROJECT
Friday, October 28, 2011 4:14:16 AM
OUT OF THE FOLLOWING THREE METHOD, ANY METHOD CAN BE USED OR A COMBINATION ALSO CAN BE USED. BUT BANKS MOSTLY INTERESTED IN THE FIRST ONE.
1) Promoters bring their entire contribution upfront before the bank starts disbursing its commitment.
2) Promoters bring certain percentage of their equity (40% – 50%) upfront and balance is brought in stages.
3) Promoters agree, ab initio, that they will bring in equity funds proportionately as the banks finance the debt portion
1) Promoters bring their entire contribution upfront before the bank starts disbursing its commitment.
2) Promoters bring certain percentage of their equity (40% – 50%) upfront and balance is brought in stages.
3) Promoters agree, ab initio, that they will bring in equity funds proportionately as the banks finance the debt portion
