Seeking Project Finance

[Time Traveller]

A Thai company is looking for a bridging loan in the amount of 8 million baht for a period of 6 to 8 weeks. They currently have an existing work contract with a Thai government authority and are seeking a bridging loan to avoid delay in the completion of the project. If anyone can provide contact details for finance providor, please PM to me.

I will then forward further details including interest rate on the loan that this company can pay.

[GuestHouse]

This might help, Suggestion, but don't tell them I sent you.

[Theyreallrubbish]

This might help, Suggestion, but don't tell them I sent you.

I have a buddy who's family has been building real estate for decades. he was building condo projects that sell out in 3-4 months and last year he asked all the banks for a loan for a new project. He was willing to put up 50% cash on the deal and wanted a loan for the other 50%.

All the banks said no!

They just said that construction loans were not being given to anyone, by order of the Board.

Smart by the banks, but terrible for businesses

[Time Traveller]

This might help, Suggestion, but don't tell them I sent you.

That's a good start. I've already spoken to a few of these, and like mentioned in another post, banks are even more conservative than usual at the moment. Unfortunately this company has been in business for only 2 years so i think it's going to difficult finding finance through mainstream lenders.

[rgs2001uk]

Company only been in business for 2 years, impressive track record.

Good to see they have learned the first rule of business, dont use your own money when you can use someone elses.

Are you sure 8 million is enough, how about 10 million, for a period of say 10 to 12 weeks?

No interest required, always happy to help out budding entrepeneurs.

Please arrange for land title deeds, chanotes, to the value of 40 million baht to be transferred to my wifes name, land owners to pay all transfer taxes.

Company to pay all expenses associated with independant valuation of property.

Please also arrange for company to pay for all legal costs involved with drawing up contracts with solicitors of my choice to draw up a contract, stating this is an interest free loan, property deeds to be exchanged prior to capital changing hands, money to be repaid within 3 months prior to land deeds being transferred back to original owners, again at original owners expense.

You will be pleased to hear my wife isnt as conservative as the banks.

Look forward to hearing from you.

[Chaimai]

Another under-capitalised company. There are thousands in the UK (and elsewhere).

I would have one key question for the management of this company:-

"How did you manage to fall 8m Baht short of working capital on a government contract that you no doubt tendered for, with knowledge of what the cash requirements were going to be" ?

[12DrinkMore]

Smart by the banks, but terrible for businesses

Well that increases my faith in the Thai banks.

And judging from the number of "reduced to sell" offers, even on new builds, I have been receiving, the bloated Farang aimed condo market is not exactly strong at the moment.

[Time Traveller]

The company is in a consortium with other companies and this is how it has the current gov't contract. Agreed the company is under capitalised for the size of the work it is taking on but the problem is more one of bad cash flow management. Suppliers with very short payment terms, while the payments terms from existing work contract is quite long, hence the need for s/t finance to avoid financial penalty for delay in completion of the current project.

We're not looking for people to borrow from but rather financial institutions (not neccessarily thai - but most of the work contracts are in thai so it would be better) or venture capital firms for a long term working relationship

[Deke]

If your contract is directly with the Thai government (one of the ministries or their subdivisions), the banks know that they are notorious late payers. I've had contracts with thirty day payment terms where I didn't get a check for six months. The upside is that, if you complete your side of the contractual obligations, they always do pay sooner or later.

If the contract is with a state enterprise like EGAT, where the bureaucracy is a little less intense, payment is pretty much on time.

Good luck.