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The construction on the financing is dependent on the projected income flows with the project which is independent from the equilibrium sheets from the doing Firm.
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Project financing is a lot more intricate than other alternate sources of financing nevertheless it helps a project sponsor tackle risky projects without having jeopardizing the assets owned because of the sponsor and impacting the sponsor’s harmony sheet.
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Project financing drastically minimizes the chance of the sponsoring business as the assets of the company can't be sold to repay the bank loan in case of default.
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