Project finance is a long-term financing of a major undertaking such as purchase of land / plot, building projects or any other investment requiring large sums of money. The loan may be paid back from the cash flow generated by the project, or from another steady source, in case the project does not yield immediate returns. For example the construction of rental houses, revenue can only be generated after completion, which may take time. The project’s assets, rights and interests are held as secondary security or collateral for the loan.

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See also Asset Finance