FINANCE 101
Even though we are not involved with the financial
process per se,
it is a major part of doing business today, and to this end,
we have
included this section to facilitate and help bring to its final
conclusion, the entire equipment purchasing package,
regardless of
Scope. On balance, it not much unlike purchasing an expensive home,
automobile or yacht. Only more so.
Please do not hesitate to email
Alois or anyone else for that matter. Addresses & phones listed
below.
The task of setting up a decent financial package, with all the correct
tax benefits, and deductions can be a difficult and time
consuming
process. It is
often helpful to see an overview of the process, so that one becomes
more au fait
with the process.
A skilled and knowledgable Banker is a must and is a major asset in
guiding one through this process, even prior to
the project
aquisition or build process begins. There are several types
of loan packages out there, one in particular has become extremely
popular
- so we will concentrate on it as it is the most difficult to conclude.
A Power Purchase Agreement (PPA) is a legal contract
between
an electricity generator (commonly a utility company) and a
host site
owner or lessor. The host site owner or lessor purchases energy or
capacity (power or ancillary services) from the
PPA Provider (the
electricity generator).Such agreements play a key role in the financing
of electricity
generating assets.
Under the terms of a PPA, the PPA provider (the
electricity generator) typically assumes the risks and responsibilities
of
ownership when it purchases, operates, and maintains the turn-key
facility.
The PPA provider secures funding for the project, maintains
and
monitors the energy production, and sells the electricity to the
host
at a contractual price for the term of the contract. The term commonly
ranges between 5 to 25 years. In some renewable
energy contracts, the
host has the option to purchase the generating equipment from the PPA
provider at the end of the term,
may renew the contract with different
terms, or can request that the equipment be removed. By clearly
defining the output of
the generating assets (such as a
solar electric system) and the credit of its associated revenue
streams, a PPA can be used by
the PPA Provider to raise non-recourse
financing from a bank or other
financing counterparty.
Commercial PPA providers such as Helio
Micro Utility, SunEdison, MMA
Renewable Ventures, Solar Power
Partners,
Recurrent Energy,
Photon
Energy Services, SolEquity, SunPower, and TiogaEnergy are enabling businesses, schools,
governments, and utilities to benefit from predictable, renewable
energy through a PPA. In the United States, the solar
power purchase agreement (SPPA)
depends heavily onthe existence of the solar investment tax credit,
which was extended
for eight years under the Emergency Economic
Stabilization Act of 2008.
http://en.wikipedia.org/wiki/Emergency_Economic_Stabilization_Act_of_2008
The SPPA relies on financing partners with a tax appetite who can
benefit from the federal tax credit. Typically, the investor and
the
solar services provider create a special purpose entity that owns the
solar equipment. The solar services provider finances,
designs,
installs, monitors, and maintains the project. As a result, solar
installations are easier for customers to afford because
they do not
have to pay upfront costs for equipment and installation. Instead,
customers pay only for the electricity the system
generates.
Of course, we need full & comprehensive credit &
financial disclosures to move this kind of process along.
Our Bankers will take
you through the basic phases,
from the preliminary decisions through to the final loan funding.
Working with you, we will determine
what type of loan will benefit
you the most. Based on factors such as your employment history,
income
and debts, and credit history,
we can decide the general amount that
you could qualify for and how large of a payment you could
afford.
We
will also consider the best terms available
Once your funding gets provisional approved, the parties of both the
buyer
and seller will agree on an escrow/title company to
serve as an agent
in handling the loan closing process. We’ll coordinate with
the escrow
agent to help make sure that your lender
has all the paperwork they
need in order to facilitate the final stages. The final stage of
the
closing process will require all parties to
the transaction for
signature on the formal loan
& other legal papers. We can provide various types of funding,
depending on the
nature of the project, the country, the term, and the
various parties' credit profile.
Project Finance is the
financing of long-term infrastructure and industrial projects based
upon a complex financial structure where
project debt and equity are
used to finance the project, rather than the balance sheets of project
sponsors. Usually, a project financing
structure involves a number of
equity investors, known as sponsors, as well as a syndicate of banks
that provide loans to the operation.
The loans are most commonly
non-recourse loans, which are secured by the project assets and paid
entirely from project cash flow,
rather than from the general assets or
creditworthiness of the project sponsors, a decision in part supported
by financial modeling.[1]
The financing is typically secured by all of
the project assets, including the revenue-producing contracts. Project
lenders are given a lien
on all of these assets, and are able to assume
control of a project if the project company has difficulties complying
with the loan terms.
To facilitate broker cooperation, we have included a Non
Circumvention, Non Disclosure agreement for your perusal
Big Al's Bio
+ NCND
STOP PRESS
We have a new source of secured, prime funding available for both USA
& International Projects.
We are interested primarily in
projects that exceed say $25 Million - with no cap on the top end.
More is better - so if you need
to fund a new Theme Park in Seoul or a New Hotel in Dubai, a
Power Plant in Iraq or an Oil Processing Plant in Africa - we can take
you thru the entire
process - a one-stop-shop as it were - call us 24/7
Maybe you simply need to purchase a new fleet of Helicopters, Jets or
Trucks - call us 24/7
AL + 1631 484 6828
Pete +
2783 7777 800
JACK ALOIS
PETE BJ
RESEARCH
MOBILE
+ 1631 484 6828
+ 2783 7777 800
+ 668 4779 2300
+ 659 351 1906
+ 1310 821 6228
+ 2782 321 4567
SKYPE ID (3) morris,pete,j
tax free inc
ica usa inc