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Project developers are facing a new reality: increased interest rates on capital. Because many project developers often take out loans either debt, equity or mezzanine capital, increased rates on capital pose financial risk. Now more than ever, it’s crucial to stay on top of your cash flow and plan your project liquidity accordingly.

Challenges in Liquidity Planning, Controlling and Reporting

Project controllers have several jobs to do during a project. When it comes to liquidity, they handle three major responsibilities:

1. Liquidity Planning

They need to ensure sufficient liquidity throughout a project, thus identifying financial bottlenecks. Based on these, they have to secure extra funding through loans. And all that while ensuring they get the most favourable interest and amortisation terms.

But forecasting liquidity and calculating financing costs are complex tasks. Project managers need to consider the right timing and amount for tranche drawings. It requires precise planning and lots of data. But the data is often compiled from various sources. Thus, manual effort is high and the process is error-prone.

2. Liquidity Controlling

Project controllers must ensure optimal capital allocation during a project. So, they track all cash inflows and outflows. That includes costs, revenues, and financing.

But cost, revenue and financing data are often processed separately. Again, high manual effort is needed to compile those data. A fast overview of liquidity during a project to support data-based decision-making is missing. So, project controllers detect project underfunding and overfunding too late. This can result in additional financing costs or even delays in the construction project.

3. Liquidity Reporting

Financial institutions demand regular reports on the project cash flow. But compiling data for creditors is tedious and time-consuming. Often project controllers lack time to go through all the project data and financing contracts. And delays in reporting can lead to delays in the release of new tranches as well.

Liquidity Made Easy - with SA���ʴ�ý

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The new financing module enables you to stay on top of your projects' cash flow, avoid liquidity risks and ease reporting. 

With the new module, you can track equity, debt or mezzanine capital financing contracts, and plan tranches drawing, repayments and interest rates within the same project cash flow forecast. Here’s what you can do with it:

No more missing data. No more late data. No more manual work.‍

‍Effectively plan your tranches and your repayments.

Automatic interest rate calculations. Forecast your financing costs.

Your benefits in detail:

• Real-time overview: Gain instant access to a comprehensive financing controlling plan, providing you with a real-time overview of your project's financing. Track financing streams, cash inflows, and outflows effortlessly. Identify any financial gaps and take proactive measures.
• Strategic insights: Empower stakeholders with insights into your project's current financing structure. Identify actionable steps to optimise financing. Whether it is restructuring existing agreements or seeking new financing options.
• Capital structure analysis: Dive deep into your project's capital structure and understand the associated costs. Gain clarity on where your capital is allocated and optimise your resources.
• Forecasting: Stay ahead of the game by planning and financing tranches at a timeline. Anticipate upcoming payments. Compare planned versus actual costs. And make informed decisions to keep your project's finances on track.
• Single source of truth: Collaborate seamlessly with stakeholders from accounting, project management, senior leadership, and banks. Our module serves as a single source of truth for all financing-related information. So that you can ensure smoother communication and decision-making processes.

The financing module is available in PRO package only.

Interested in learning more? Then don't hesitate to get in touch via the form below!