is the long-term financing of infrastructure and industrial projects based on the projected cash flow of the project rather than the balance sheet of its sponsors. The loan is secured by the project assets and paid entirely from the project cash flow rather than from the general assets or creditworthiness of the project sponsors.
The financing is typically secured by all of the project assets, including the revenue-producing contracts. As project lenders, we are given a lien on all project assets and are able to assume control of a project if the company has difficulties complying with the loan terms. Project finance is particularly attractive for companies because they can fund major projects off balance sheet.