How MDV Finances your Project/Contract
Project Finance in general refers to longer term financing of infrastructure and industrial projects based upon the projected cash flows of the project rather than the balance sheets of the applicant. The project finance methodology and framework is adopted and revised by MDV to suit the needs and requirements of the technology sector.
MDV proprietary Due Diligence Framework emphasises assessment on the strengths and capabilities of an applicant.
Hence, each financing application is reviewed and assessed individually, subject to the merits and capabilities of the project and the people implementing the project. Each financing is also structured in accordance with the project’s cashflow requirements, where payments for the principal and purchase price are paid when received from contract awarder or project sponsors.
How MDV finance your project
Stages of Company Developement
SEED STAGE FINANCING
This stage is a relatively small amount of capital provided to an inventor or entrepreneur to prove a concept. This involves product development and market research as well as building a management team and developing a business plan, if the initial steps are successful. This is a pre-marketing stage.
EARLY STAGE FINANCING
This stage provides financing to companies completing development where products are mostly in testing or pilot production. In some cases, product may have just been made commercially available. Companies may be in the process of organizing or they may already be in business for three years or less. Usually such firms will have made market studies, assembled the key management, developed a business plan, and are ready or have already started conducting business.
EXPANSION STAGE FINANCING
This stage involves working capital for the initial expansion of a company that is producing and shipping and has growing accounts receivables and inventories. It may or may not be showing a profit. Some of the uses of capital may include further plant expansion, marketing, working capital, or development of an improved product. More institutional investors are more likely to be included along with initial investors from previous rounds.
Capital in this stage is provided for companies that have reached a fairly stable growth rate; that is, not growing as fast as the rates attained in the expansion stages. Again, these companies may or may not be profitable, but are more likely to be than in previous stages of development. Other financial characteristics of these companies include positive cash flow. This also includes companies considering IPO.