al khaliji

When more conventional methods of obtaining a business loan are either undesirable or not possible, there is always the option of structured finance. Structured finance essentially is the process of making a loan based on a strong performance in cash flow in the past. Rather than other assets being used as collateral for the loan, funds are advanced based on the history that indicate a consistent flow of cash into the borrower’s business that will allow for the timely and orderly repayment of the loan amount.

The use of structured finance can be attractive to businesses that do not have many material assets, but have a strong client base and a history of monthly billing coupled with consistent debt collection. For businesses that are looking to expand their client base, and need some quick cash to do it, structured finance may represent the most cost efficient way to raise funds.

Our corporate team has the expertise you require with a combination of industry insight and professional funding knowledge to facilitate financing for seasonality, growth, cash management, consolidation, international and domestic market expansion, acquisitions, receivables and any other financing that will help your business succeed.

• project finance

  Project financing involves providing finance for a particular project, such as a factory, pipeline, power station or ship which is repaid from the cash-flow of that project. It is different from traditional forms of financing because the financier principally looks to the assets and revenue of the project in order to secure and service the loan.

  Project financing includes understanding the rationale for the projects, preparing the financial plan, assessing risks, designing the financing mix, and raising funds. A knowledge-base is required for designing contracts, handling legislative provisions, determining the project's borrowing capacity, preparing cash flow projections and using them to measure expected rates of return, tax and accounting considerations, and analytical techniques to validate the project's feasibility.

  Project financing is a challenging task requiring intellectual capital and a bankable structure. Our experienced and committed team of experts will ensure that your project finance needs are well looked after.

• contract financing

  You have just won a great contract, but you don’t have the cash to buy the components to manufacture your product. We can kick-start the deal by financing your materials and Accounts Receivable so that you’ll have working capital throughout the “life-cycle” of the transaction – all you need is a strong contract or purchase order together with a solid buyer(s).

  Contract Financing is an excellent way of increasing cash flow for fast growing and established companies. Don’t be limited to just one contract at a time – with the additional cash, you can confidently accept more contracts.

  We can issue bid bonds, advance payment guarantees, performance bonds, etc. on your behalf.

  Bid Bonds: Contracts, particularly those for major development schemes, are awarded as the result of competitive tenders, which must be accompanied by a bid bond, the value of which is usually a percentage of the contract amount. The purpose of the bid bond is to substantiate the financial standing of tendering parties. Bid Bond is an indication of a company’s ability to carry out the tendered work.

  Performance Bond: When customers are successful in their tenders for contracts they are usually required to provide Performance Bonds. The amount of such bonds is usually based on a percentage of the value of the contract. Performance Bonds undertake to pay cash penalties if obligations under contracts are not discharged by the party which is carrying out the work. It is an indication that a company has the necessary skills and capabilities to carry out the required work and comply with the agreed terms and conditions of the contract.

  Advance Payment Bonds: Civil engineering contracts sometimes include provisions which allow principals to receive advance payments from beneficiaries for purposes such as mobilising plants and equipment. The terms of such guarantees normally provide that sums advanced must be repaid from progress payments during the life of contracts.

  Maintenance Bonds (Retention Money Bonds): It is common practice for beneficiaries of projects to withhold amounts from progress payments to meet the costs of any construction/performance deficiencies arising during a specified period (maintenance period) after completion of construction. The purpose of retention money bonds/maintenance bonds is to substitute them for retained funds, thus allowing funds to be released to principals.