(IT) PROJECT FINANCE
Worldwide Company Corporate Finance Brokers utilises the Project Finance Plan (PFP) to cater for larger
and more sophisticated IT acquisitions. Projects of this nature can
often include multiple suppliers, considerable up-front investment
and may take many months to implement before the IT solution goes
live and begins delivering real benefits. The PFP allows customers
to consolidate costs incurred whilst the system is being implemented
and convert these into a single lease contract at the end of the
It works like this:
- The Lender agrees a PFP facility against which the customer can
- PFP and Supply Contract are signed prior to the commencement
of the IT project.
- As products and services are delivered, supplier invoices
are raised in favour of the Lender.
- Customer authorises payment of the various invoices at
- Customer is provided with a highly competitive interim
facility for the project period expressed as a daily rate/£1,000
of capital. Alternatively customers can opt to pay nothing until
the roll out has been completed and the lease activated.
- Customer receives ongoing progress reports identifying
payments made on their behalf.
- At the end of the project period, the various invoices are
consolidated into an overall capital cost and the lease facility
Key benefits include:
- Financing is available over the term of the project and up
to seven years beyond.
- Consulting, training, installation, data conversion, scoping
exercises, software licenses, hardware, maintenance, warranties
and delivery costs can all be included within the PFP.
- Avoids the cost and hassle of managing multiple payments
from many sources.
- No burden is placed on a customer’s day to day working
- Customers can commit to purchases knowing a lease facility
is in place once the system goes “live.”
- Customers anticipate spend at the beginning of the project
but are not obliged to drawdown a minimum or maximum level.