Project finance: From the first review to repayment

A project can make commercial sense and still be difficult to finance. Revenue may arrive after the first debt payment. A contract may remain unsigned. The sponsor and lender may be working from different budgets.

Project finance starts with the project's ability to support its debt. The EBA's project-finance guidance explicitly addresses project cash flows as part of credit assessment. Security and sponsor recourse depend on the structure and agreements; the label alone does not settle them. EBA guidance, section 5.2.11

Define the deal before collecting the files

A financing may cover several projects or companies. That does not make their money interchangeable. Identify the borrower, the use of proceeds and the source of repayment. Map each project to its contracts and cash flows, including restrictions on moving funds between entities.

This avoids a basic modelling mistake: counting money as available where it cannot be used.

What does the project company do?

A special-purpose vehicle, or SPV, identifies the entity holding the project's contracts, assets and cash flows. The lender still needs to establish who bears each obligation. A separate company does not remove completion risk or satisfy outstanding funding conditions.

Ask who pays for cost overruns, who must provide additional capital after a delay and which delivery conditions can postpone revenue. Record the answer against the relevant contract. The EBA's project-finance guidance considers project contracts and risks during construction and operation; the legal structure alone is not an answer to those risks.

Give the lender a package it can question

A useful first package explains what the money pays for, which funding sources are committed, how repayment works and what remains uncertain. Each material statement needs a traceable basis.

Treat a signed contract differently from an expression of interest. Identify conditions that still have to be met. Use the readiness checklist to record the gaps rather than hide them behind a complete-looking folder.

Follow the path beyond an offer

Lenders may request information, propose terms or decline. Compare offers using compatible currencies and assumptions, including fees and payment timing.

An accepted offer is not a bank balance. Closing documents and drawdown conditions still matter. Plan through to the first usable disbursement, not just the signature date.

Then compare debt service with the project's calendar. A payment due after completion cannot fund costs incurred before completion without a separate source of liquidity. The DSCR guide helps assess periodic debt coverage, but it does not replace a dated cash-flow plan.

Keep the evidence useful after funding

Reports, drawdowns and repayments continue to depend on the agreement. When a contract or payment date changes, someone needs to identify the affected calculations and decisions.

That continuity is the problem we are building FINKI to address. A product evaluation should establish which functions are available for the specific deal, rather than assume every workflow is already covered.

Start with a package where every open question has an owner. Use the readiness checklist.

This guide explains a working process, not the suitability or legal terms of a particular financing.