Project Finance Plan
Project finance provides an on-demand financing facility that matches the scope and duration of your IT project ... and your finance agreement start date is deferred until the solution is “live”!
This facility is specifically designed to help you manage particularly large or protracted technology acquisitions from single or multiple vendors. Your finance agreement start date is deferred until the project is successfully completed.
At the outset of the project, you and your vendor(s) agree with Capitas the likely duration of the project and the approximate total contract value. These facts are then used as the basis to arrange both the pre-lease (interim finance facility) for the project period and the finance contract to accommodate the commissioned solution. The pre-lease then allows you to commence the project, secure in the knowledge that the equipment vendor(s) can be pre-paid throughout the delivery and installation phase.
Interest payments due on equipment delivered before the end of the project can be paid one of three ways - monthly in arrears, amortised over the duration of the project period and invoiced on go-live or conveniently rolled into a periodic payment as part of the finance agreement.
Benefits of Pre-Lease Project Finance Plan:
- You can concentrate on managing the project, as opposed to managing numerous finance agreements with varying payments and end-dates.
- You get the products and services on a ‘have now, pay later’ basis and need not utilise valuable capital to make deposit payments.
- One single finance agreement commences at the end of the project once the solution has gone live
- Short-term interim finance facility period of typically between 3 to 12 months followed by a medium-term funding agreement over 3 to 5 years
Today, both SME businesses and large enterprises are opting for financing over purchasing. Preservation of capital, increased cashflow and the desire to maintain competitive advantage are the drivers. In the process, they’re enhancing the benefits of technology whilst simultaneously managing risk.
Projects
On-demand “one-stop” financing facility that matches the scope and duration of your project
Project Finance through Capitas provides you with the ability to tackle long-term and large-scale technology initiatives. All aspects of the solution can be bundled into a consolidated finance agreement with flexible terms aligned with business requirements. This enables projects to become self funding, and adapt to changing needs. Capitas Finance can coordinate payment terms with the achievement of project milestones and deliver a financing structure that is both predictable and in accordance with tangibly realised benefits. Click here for information on our Project Finance Plan.
Investments in large scale IT investments increase clients’ propensity to finance because projects of this nature require considerable up-front spending. In addition, appropriate funding enables customers to:
- Match payments with the realisation of business benefits from technology initiatives
- Conserve cash for use in other parts of the business, for example, working capital to fund stock and expansion
- Simplify financial management of complex projects of this nature