A crucial element to finding project financing, is defining what your project is about so that others can understand it.

The first thing you have to do is work on refining your idea. Finding project financing is easier once you understand what you need, what you want and how others can help you get it. Think about your idea from the point of view of an investor and look at its positive and negative aspects. Estimate different scenarios of development in order to attract interested investors. When seeking project financing, be realistic about your priorities and handled them well.

A second important question: for how long will I need project financing? You build the financial plan for your business, by identifying the needs of the company and distributing them according to investment needs or operations needs.

Project financing responds to long term needs and which generally have a payback period over 7 years. Under this category we can include acquisition of new properties or lands, extensions to your current property, redecoration or renovation of office space, etc.

You may be planning to find project financing for investments shorter than 7 years. Examples of those kinds of investments are the installation of heating or air condition systems, purchase of materials for production, data processing, vehicles, trademark filing, patents, stocks, co-partnerships, etc.

Examples of short term investments are: acquisition of finished goods and materials for production, trainings, research and development, computer software, etc.

Depending on your project and your business plan, your project funding will be long term, medium term or short term.

Depending on the financial needs of your project, you can choose to use your own funds to reduce the amount of project funding needed from external sources. You can also choose use to request funding from your friends and family. If your business is already running, you can choose to use the net income from last year to fund next year’s operations.

The resources in the medium or long term for a period of 2 to 20 years. In this category we will include all long and medium term leasing of equipment, property leasing, national or public support that comes in the form of subsidies or repayable advances.

Short term investments are generally for less than 1 year. They are related to the acquisition of short term assets, or services like factoring, or financial commitments like loans or bank guarantees.