What is project financing?
Project financing is a method of financing in which the source of repayment comes from the cash flow generated by the operation of the asset created as a result of the financing. Compared to traditional corporate financing, project financing is different in several ways, notably because there is no historical operational performance on which the financier can base the lending decision. Consequently, in project financing, the precise forecasting (as much as possible) and pre-ensuring of future cash flows, which serve as the basis for repayment, are of paramount importance. This can be achieved by securing in advance supplier contracts for raw materials and sales contracts for the products to be created, as well as conducting a very thorough assessment of market demand, competitors, and the relevant regulatory environment. Typically, project financing entails higher risk for the financier than traditional corporate financing.
Does Nexa Bridge Consulting only do project finance related tasks?
No. We can assist with equity investment, traditional corporate financing, project financing, and any combination of these. In fact, our goal is to help project sponsors and/or companies who turn to us with their financing issues and to find the optimal solution for each client.
Your services may be interesting for us (although we are not entirely on board yet), what is the next step?
Completely understandable. In this case, we recommend contacting us through one of the provided contact methods to arrange an online or in-person meeting. During this meeting, we can introduce ourselves and discuss in detail the task for which you are seeking a solution. Typically, a 30-60 minute conversation reveals a lot about how we can assist you. If, after the conversation, you decide to proceed, we will provide you with a quote for the service based on a detailed and accurate task definition. Upon acceptance of the quote, we will sign the engagement agreement and begin work.
Is Nexa Bridge Consulting available for tasks outside Hungary too?
Yes, we are happy to participate in foreign projects as well. Our most extensive network of connections is in the Central and Eastern European (CEE) region. As we move further away from the CEE region, our insight into the financing landscape gradually decreases, but we are not opposed to such inquiries.
In what languages does Nexa Bridge Consulting provide services?
We can provide an equivalent level of service in both English and Hungarian, whether it involves preparing project support documents, participating in negotiations, or contract signing, etc. We also handle the processing of incoming documents in English, Hungarian and German.
We have our own financial model, project description, we just need someone who can assist us in negotiations with financiers, in reaching out to potential financiers, managing the financier relationships during the financier selection phase. Can Nexa Bridge Consulting help us in this too?
The short answer to this question is: Yes. However, we find it important to emphasize that in such cases—before signing the contract but after signing a non-disclosure agreement—we would like to review the existing project support documents. One of our fundamental principles is that we only associate our name and reputation with projects that meet certain quality standards, which includes having support documents that are in form and substance presentable to external parties. If we find that the existing documentation needs to be supplemented or modified, we will take this into consideration when providing our proposal.
If Nexa Bridge Consulting undertakes a task, does it mean that it considers the underlying project fit for financing?
As much as we would like to be, we do not consider ourselves infallible oracles in financing matters, and thus we avoid making definitive statements. Since we fundamentally apply a conservative approach (we prefer “under-promise and over-deliver” situations), it is possible that we might consider a specific project or company to be doubtful or difficult to finance, yet it still manages to secure funding quickly and on favorable terms. Conversely, given that financing markets can change relatively quickly, the opposite scenario cannot be ruled out either. However, we strive to minimise such situations through frequent consultations with financiers, staying informed, and continuously monitoring the markets. One certainty is that we will not support a project that we believe is entirely unfeasible in terms of implementation and/or financing. We are advocates of open and straightforward communication, meaning that if we have such doubts, we will inform the client at the beginning of our collaboration. If, despite our reservations, you would like our assistance, we can still prepare the appropriate project support documents—exclusively on a fixed-fee basis and strictly on a “no-branding” basis. This means that the materials prepared in this manner cannot contain any reference to Nexa Bridge Consulting or its employees. In this sense, except for the latter detailed case, taking on a task by Nexa Bridge Consulting can be considered a form of endorsement that the project in question is deemed financeable in some structure.
Is there a preferred group of financiers that Nexa Bridge Consulting likes to work with?
Nexa Bridge Consulting and its employees are completely independent of any financiers, meaning we have no interest in favouring one financier over another. However, this does not mean that we do not have opinions on which financier would be the best fit for a particular financing goal. Providing advice on the appropriate financing method and the circle of financiers is a specific expectation of a financing consultant. However, it is important to emphasise that this advice is always based on previous experience and professional preference, not on direct or indirect incentives leading to bias. Our fundamental principle for all engagements is that we only accept compensation and/or other direct or indirect remuneration from the client in connection with the given assignment. This ensures that we act solely in the client’s best interest. If there are any circumstances to the contrary, we will explicitly and emphatically inform the client before signing the contract.
