Project Financing

Project financing follows a sequence of milestones based on the various stages of the project. The milestones may vary depending on the Lender’s lending policy, amount of borrowing, Lender’s risk assessment profile and experience with the Proposer or Borrower.

Proposal – Project financing always begins with a detailed proposal of the project. The proposal should include a background of the project, highlighting the purpose of the project, parties involved, expected outcomes, duration and potential risks associated with the project. The proposal should include all cost associated with the project and the amount of financing required. Beyond the proposal, the proposer may require financial documents such as company or personal financial statements, net worth statements, tax documents etc. The proposer may also require other documents such as appraisal reports, drawings, site plans, estimated budget and other pertinent information.

Position Letter or Letter of Intent (LOI) – The Lender would typically charge a fee for processing the application including expenses incurred for an independent Cost Consultant to verify the cost/budget of the project. When the Lender is satisfied with the proposal, the Lender would respond with a Position Letter or Letter of Intent (LOI) specifying details of financing which encompasses timeframe, interest rates, fees and other expenses including various terms and conditions of the Lender; it also details when the fees and expenses are due at different stages of the project. The LIO also defines when funds would be disbursed to the Borrower at specific milestones of the project based on a disbursement schedule.

Financing Contract – Upon acceptance of the terms of conditions of the LOI, the Lender and Borrower would go into a Financing Contract which binds both parties together under the agreed terms and conditions. The Borrower would need to request for the disbursements of funds after achieving the relevant milestone. The Lender would engage the services of an independent Cost Consultant to verify site progress as well as actual invoices incurred and paid by the Borrower. The Lender would disburse funds against the Claim Report prepared by the Cost Consultant. The Lender would collect interest expenses for funds being disbursed to the Borrow till the completion of the project.

For All of Your Home Remodeling and Improvement Needs

Home additions and renovations significantly increase the value of any home through improved functionality and overall aesthetics. No matter what you’re looking to add to your home or even perform a complete home renovation, we can make it happen. We take care of everything from the paperwork required to alter the home to architecture and design needs. All these processes are done entirely in-house with our team of experts. We can assure you that you will be improving the value of your house once the project is complete.

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Finally, investing in high-quality home improvement products and services is critical to making home renovations work to increase market value and functionality. You should always seek professional opinion during planning to ensure the project meets specific standards and satisfies your needs and requirements.

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