At registration of similar contracts of pledge and their estimation there are some nuances, main of which are identification of ownership rights on object of construction in progress. In most cases the investor enters ownership rights on object of real estate only after its commissioning. Then, as a pledge subject property rights on real estate the ownership right on which will be received in the future can act, and during the period of building the investor can conclude investment contracts with others investors-partners on which the ownership right should pass to new owners who cannot know at all that their right to reception in the property of object of real estate is encumbered by credit obligations.

Besides, regional authorities can put severe constraints on earth tap, strictly limiting term of building or demanding the ground area redemption in the property that considerably will raise a cost part of the project. In case of failure to carry out of these conditions the builder is threatened with loss of rights of use of the given site or, at least, penalty provisions.

Thus, risks of banks at crediting of the projects connected with building on the security of construction in progress are high enough. As provision under such credits the corporate rights to the enterprise on which all is arranged design-budget and the agreed documentation, not leading any other financial and economic activity can act.

Functions of banks at financing of similar projects can’t be limited to issue of the credit and registration of the agreement of pledge. From banks high-quality monitoring of these credits, participation in project control, mandatory control over building and flowing financially – enterprise economic activities is necessary.

The main problem for builders is availability of long-term and cheap credit resources. In our practice, one of the most effective tools of financing of such projects is the European Reconstruction and Development Bank Credit line on development of small and average business.

However, here again credit reception is completely not problem less. So insurance of building risks under our conditions is improbable, an estimation of object of construction in progress – pledge, below necessary size of credit resources. Plus there are also restrictions at cost of projects and to pay percent on the credit before object delivery in operation to the investor it is necessary to spend own means which could be enclosed in the project, there is no accurately verified building estimate which is corrected, as a rule, in the big party.

One more problem can become that the share of own contribution of the developer should be not less than 30 %. So as you may see it is not that much easy, but demands time and a lot of efforts.

The times when governments have been flooding people with all sorts of grants are over. At least for a while. But that does not imply that one must get rid of the idea of getting small business grants.

Everything is doable with nicely balanced attitude; small business grants including.

Visit this blog for more helpful tips about grants, how to apply for grants, grant examples, traps and ticks of the grants. This information will help you to get small business grants or any other grants faster.