Finance is indeed a very wide field and the various branches of finance are so intertwined that spotting the difference between the various arms is an uphill task. Some funds are taken up to develop key components that may not attract profit for many years and some may not even attract profit at all. Development funding is mainly used to develop key components of an enterprise or a social construct and the expected benefit is not always in terms of financial gains.
Some development projects may bring about profit indirectly but the main purpose is to improve structures and to create enabling environment and the necessary conditions for things to work. There are many sources of funds for individuals and corporate organizations in need of funds to start or complete projects and knowing the firms that give very good financial packages to borrowers is the first task in securing proper development funding.
When seeking development funding it is advisable to hire competent development managers who know all there is to know about sourcing funds and executing projects. Consultants will help in the area of
In the beginning a project may seem like the right thing to do but over time after colossal sums have been spent, the originators will realize that the project was indeed ill advised. In such cases, recouping spent funds is almost impossible. Consultants will do sound project research to find out if the project is indeed going to deliver on promises.
Most funding institutions will not give out monies without seeing the feasibility report of the project first. A development consultant can help in drawing up a feasibility report that answers all the relevant questions that lenders will want to know. The financial cost of the project also needs to be planned well in advance.
Unforeseen eventualities are also things to be planned for. Successful developers are aware of the ever changing cost of materials and changing circumstances that could influence the potential success or failure of the project and so they put proper plans in place to ensure that these changes are planned for and taken car of should they arise. One common eventuality is a rise in project cost. Such rises may be as high as 50% of the initial cost estimate. Without planning adequately for such price hikes, the project may be left unfinished due to funds paucity.
There are quite a lot to take cognizance of when planning for a project and a consultant can prepare your feasibility studies and every other necessary document before you approach a financial institution to request for development funding. With competent managerial expertise, all t’s will be crossed and i’s dotted.