Financial Expertise

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Non Recourse Financing

Androma LLP undertakes various types of financing services and funding models for its clients which are best suited to their as well as our business needs. Non recourse funding is a major choice in the project funding arena for most of the borrowers because the fewer risks involved. Androma LLP is backed with a massive expert panel and experienced stalwarts in the field of financing who are able to curate most profit yearning and least risk prone models for our clients. A non-recourse funding works as a loan where the borrower or guarantors are not personally liable for repaying any outstanding balance on the loan.

Non-recourse funding and financing is one such tool which if worked out through domain expertise and financial modelling expertise of the lender can prove useful for financing commercial real estate, shipping, or other projects with high capital expenditures, long loan periods, and uncertain revenue streams. Major projects that are government or quasi-government sponsored (infrastructure projects such as toll roads, hospitals, or power generating plants) are usually secured through non- recourse funding and financing. Such a project is financed based on, and secured by, the project itself, with the lender being repaid out of the project’s cash flow, rather than the project being secured by the general assets or creditworthiness of the sponsors of an infrastructure project.

There are many types of non-recourse funding depending upon the terms and conditions of the underwriting. A non-recourse loan is issued where the borrower’s return credibility is not proven satisfactorily. By choosing to avail a non-recourse loan, the borrower is putting fewer of his assets and collaterals at risk. However, it must be noted that a non-recourse loan is not less risky per se, but only ensures that unlike a recourse loan, the lender can realise his losses only through the collateral pledged, even though its value may turn out to be less than the original loan and funding issued.

Androma LLP helps its clients look carefully into the intricacies of such loan agreements and makes sure that the client doesn’t end up signing something which might prove harmful in future. On the flipside, we ourselves provide non-recourse funding where we are satisfied of the client’s vision and commitment to realise their project or business.

It is our steadfast mission to make your business dreams come true without the interference of funding and financial worries. Our services of non-recourse funding are aimed at same.