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Project Finance Model for Small Contractors in USA

Construction Economics and Building

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Title Project Finance Model for Small Contractors in USA
 
Creator Nesan, Jawahar
 
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Description Construction projects do not require a large capital outlay but a large working capital to start up the project. Unfortunately, for small contractors there are very limited options available from the banks or other lending institutions to cover this large working capital requirement in the absence of sufficient collateral. The “Project Finance” method presented in this paper is recommended as the most effective method for small contractors in the United States. The problems of small and start up contractors in funding their projects have been little addressed in the literature. The current financing practices were observed through both the literature review and interviews with contractors and bankers in the western Michigan area and subsequently a system has been proposed which could help a small start-up company seeking higher growth. The growth rates that can be achieved using the project finance system in contrast to the traditional “line of credit” arrangements as illustrated in this paper show that the project finance model is beneficial.
 
Publisher UTS ePRESS
 
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Date 2012-11-20
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
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Format application/pdf
 
Identifier http://epress.lib.uts.edu.au/journals/index.php/AJCEB/article/view/2966
10.5130/AJCEB.v6i1.2966
 
Source Construction Economics and Building; Vol 6, No 1 (2006): AJCEB; 25-41
2204-9029
 
Language eng
 
Relation http://epress.lib.uts.edu.au/journals/index.php/AJCEB/article/view/2966/3138
 
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Rights Copyright (c) 2006 Jawahar Nesan
http://creativecommons.org/licenses/by/4.0