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PROJECT FINANCING
Bridging Loan
An
advance given to a property project developer to 'bridge' his working capital
needs and ensure smooth continuation of the project until he has sold the units
and received payments from the purchasers.
End Financing
An
arrangement with a project developer to provide loans to property purchasers to
help them finance the purchase price of the property. Proceeds (usually 80% to
90% of the purchase price) from the end financing will be used to settle the
bridging loan.
Syndicated Loan
A single loan jointly financed by a consortium of financial institutions to
provide financing for large projects.
Banker's Guarantee
An
undertaking by the bank to guarantee payment of a debt or performance obligation
by the applicant. This allows you to undertake projects with minimal capital
outlay.
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