4. Do I have a financing advisor? Experienced project de- Our customers want complete pellet production plants from a single source – We have the expertise to deliver turnkey process equipment. velopers know it’s a good idea to pay for feasibility, engineering, and market studies, and they also realize the value of financing advisors. A good broker/advisor searches for project funding from numerous sources and stays current with the latest financing de- velopments. As a new industry, bioenergy financing can include numerous options, depending on credit strength, project size, and company history. An experienced financing advisor can help you sort through the options and point you in the correct direction while minimizing time wasted. 5. Do I have a spreadsheet-based financial plan that can model different scenarios? With a computer-based spread- sheet, you can make quick and accurate changes to your finan- cial plan based on any “what if” questions or changing feedstock and market conditions. One project I am advising is on its ninth version of its financial plan, which remains accurate for today’s inputs and market conditions because it was built to model dif- ferent scenarios quickly and easily. Your plan must be accurate to make it to the top of the investor’s list, and the ability to make quick changes based on market developments shows a high level of sophistication to a potential lender. I have not yet mentioned government funding, but that is not an oversight. Far too many project developers are chasing gov- ernment grants in the hope of securing the additional funding needed to turn a project into reality. In truth, accessing govern- ment money is a time-consuming process and, if you qualify, the money often comes after the project is complete, not during the construction phase when it’s really needed. Grants can help, but they’re not the easy money many people believe they are. You can be a start-up company with minimal cash, but you must have a thorough financial plan that includes income and expenses, cash flow projections, and a construction budget. It is also a good idea to work with a financing advisor who can get your plan to the right people. Remember, if it were easy, every- one would be an Olympian. When discussing your financial plan, team, and vision, keep in mind that potential investors and lend- ers are looking for shared risk and good credit strength. Start building your credit strength now. • Reg Renner of Atticus Financial in Vancouver, BC, finances machinery such as biomass boilers and densification equipment. With 38 years of greenhouse/horticultural experi- ence, he also recently helped secure carbon offset credits for four greenhouse clients. E-mail: [email protected]. P E L L E T P LANT SOLUT IONS Your benefi t from an experienced and well- known reliable supplier of complete wood production plants: - Complete pellet plants including engineering from one source - Main equipment from Dieffenbacher Group - Turnkey plants with performance guarantee - Fast start-up and reliable production DIEFFENBACHER GMBH + CO. KG [email protected] | www.dieffenbacher.de Allied Blower Amandus Kahl Beltran Technologies Buhler CBI/BioWest Del-Tech Dieffenbacher Duratech Industries First Union Rail AD INDEX 31 15 7 6 23 19 30 14 Groundworx/Doppstadt 2 Jeffrey Rader John Deere 22 Keith Manufacturing Morbark Peterson Rawlings Teaford Canada 16, 17 28 10 32 18 5 23 West Salem Machinery 19 MAY/JUNE 2010 w3p_pa_GB
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