Large funding for companies and projects
When a company needs a large term loan, project finance or a consortium facility, the lender appraises the project and the promoters, not just last year’s balance sheet. The information request is long, several professionals are involved, and the timeline runs in months. This page explains what is usually asked for and who prepares what, so you can organise the work. We do not prepare project reports, certified projections or lender presentations, and we do not approach lenders.
We explain what lenders usually ask for and help you get your papers in order — the first call is free.
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Details
What lenders usually check
- The promoters: track record, group companies, net worth, and how much of their own money is going in.
- The project: purpose, cost breakdown, technology, suppliers, implementation schedule and approvals.
- Financial projections: revenue assumptions, margins, debt-service coverage, sensitivity to delays and price changes.
- Existing borrowings, group exposure and credit ratings where they exist.
- Security: project assets, promoter guarantees, and sometimes corporate guarantees or escrow of receivables.
Documents to keep ready
- Audited financial statements for three to five years, with auditor’s reports.
- Detailed project report (DPR) or information memorandum, usually prepared by a consultant or chartered accountant.
- Projections with assumptions, in the lender’s format.
- Approvals and licences: land, environment, regulatory, where applicable.
- Quotations and contracts for major cost items.
- Promoter and group details: KYC, net-worth statements, shareholding.
- Existing sanction letters and repayment records.
Repayment
Term loans are repaid over several years, often with a moratorium during construction and step-up instalments after. Lenders monitor covenants — ratios you must maintain — throughout.
Interest and charges
Negotiated, usually floating and linked to a benchmark. Upfront fee, commitment charges, legal and technical due-diligence costs, and rating fees are common.
Security or own contribution
Promoters are expected to bring a meaningful share of the project cost as equity. Security usually covers the project’s fixed assets and cash flows, with personal or corporate guarantees.
How to prepare
Appoint the professionals early: a chartered accountant for projections, a consultant for the DPR if needed, a lawyer for approvals and documentation. Keep one master list of every document, who owns it and its status. Agree internally on the assumptions before they reach a lender. Expect several rounds of questions.
Questions about large funding
What is the difference between a term loan and project finance?
A term loan is lent to the company on its overall strength; project finance is structured around a specific project’s own cash flows, often through a separate company.
What is a consortium?
Several banks lending together under a common agreement, with one as lead. Used when the amount is too large or risky for one lender.
What is a DPR?
A detailed project report: the project’s technical, commercial and financial case in one document. Lenders expect it from a qualified consultant or CA.
How long does sanction take?
Typically several months from a complete information pack, longer if approvals are pending.
What is a credit rating and do I need one?
An independent agency’s assessment of the company’s ability to repay. Lenders may require it above certain amounts; it affects pricing.
What are covenants?
Conditions in the loan agreement — financial ratios, reporting, restrictions on new borrowing — that the company must keep to. Breaching them can trigger penalties or recall.
What can Orange Fincorp do here?
Explain the process, help you build and track the document list, and prepare a plain-language summary of your business from your figures. We do not prepare the DPR, certify projections or negotiate with lenders.
What we do here: we explain what lenders usually ask for and help you get your documents in order. We do not lend, arrange loans or take commission. The first call is free. See what we do.
