Nola Capital Corporation
Funding for waste-to-energy projects is an area of finance that requires a specialized expertise. As to be expected,
the more operating history a project has, the easier it is to obtain financing on terms that are acceptable. However,
even a startup can be financed if the right ingredients are in place and it is a strong project.
Projects We Particularly Like
We are most interested in projects where we can take a portion of our compensation in the form of a long term
participation in the project’s future profitability.
We talk to people all the time with waste-to-energy and renewable energy projects who have been looking for
months and even years for someone to finance them. We do our best to identify those projects that make business
sense and can be funded on reasonable terms. If someone has the ingredients to present a deal that investors can
get comfortable with, they need to go ahead and make the effort to get funded.
There are a number of ways to finance these situations, however, the initial information we need to review will
include financial modeling, a business plan, a technology overview and other items that explain the project and
support the need for capital.
Uses For Financing
- Expansion of an existing project
- Raising additional working capital by monetizing existing assets
- Cashing out shareholders
- Raising cash to complete an acquisition and avoid using stock in the transaction
- Financing construction and initiating the operation of a new project
Renewable Energy Financing
- Wind Power
A major issue for many projects is whether or not there is a sufficient amount of cash equity invested to make
investors and lenders feel comfortable. If a project requires equity, we can assist with that need and bundle it
with additional debt financing.
The general outline for debt financing is:
75% debt financing. We provide both equity and debt financing in the proper amounts to fund a project.
- A project does not need to have a specified IRR.
- There should be a minimum of 25% equity with a more comfortable amount being 30%. That means 70% to
- It is preferred that the technology be proven. Patents on the technology are helpful. If the technology is new, a
technology insurance wrap may be used.
- Projects selling electricity do require a PPA. If a project sells a product other than electricity, Purchase Orders
from a reputable customer(s) are required to provide assurance of a long term income stream.
- A fixed interest rate for up to 40 years can be locked in on debt financing.
- The current interest rate is around 6.75% to 7.25%.