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Amongst the main benefits of project funding is the fact that it provides for off-balance-sheet funding on the project, which is able to not have an effect on the credit score on the shareholders or the government contracting authority, and shifts a lot of the project threat to the lenders in Trade for which the lenders receive a greater margin than for regular corporate lending.
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The components of belongings and liabilities which are studied within a specified diameter of financial commitment and includes looking at uncertainty coupled with expenditure danger are termed as Finance.
There is limited or no recourse on the sponsors of the project (shareholders of project company are commonly only liable up to the extent of their shareholdings);
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