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Given that Now we have a simple knowledge of what project finance suggests, let's know how it differs from company finance. The table down below outlines essential distinctions amongst the two forms of funding that need to be taken into account.
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Project finance could be the structured financing of a particular financial entity – a Specific Purpose Car (SPV) – made via the sponsors making use of fairness or financial debt. The lender considers the funds stream created from this entity as the major source of financial loan reimbursement.
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