27 Feb LOANS FOR 2022
Project funding is the act of providing financial resources, usually in the form of money, or other values such as effort or time, to finance a need, program, and project, usually by an organisation or government. Generally, this word is used when a firm uses its internal reserves to satisfy its necessity for cash, while the term financing is used when the firms acquires capital from external sources.
Funds are injected into the market as capital by lenders and taken as loans by borrowers. There are two ways in which the capital can end up at the borrower. Here at Varsity Finance, our preferred partners focus on direct lending to borrowers or promoters by providing adequate financial services when needed. Entrepreneurs with a business concept would want to accumulate all the necessary resources including capitals to venture into a market this is part of the project funding process, as some businesses would require large start-up sums that individuals would not have. These start-up funds are essential to kick start a business idea, without it, entrepreneurs would not have the ability to carry out their concepts in the business world.
The diagram below shows the project funding cycle: