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In project funding, the lenders have limited recourse. Which means that in the situation of a default, the lenders have recourse towards the belongings under the project, securing completion and making use of general performance guarantees under the project.

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This is a style of secured loan after you can avail cash by preserving an asset as collateral towards the lender.

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Not all infrastructure investments are funded with project finance. Lots of companies difficulty traditional financial debt or equity in an effort to undertake these kinds of projects.

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