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#Finance Guides

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#$10M+ Projects #Feasibility Study #Market Research #Project Finance #Project Owners

A feasibility study is one of the most important documents in any large project finance application. Before committing to a loan from $10 million or more, lenders require clear, evidence-based proof that a project is financially viable, commercially sound and operationally deliverable. The quality of a project's feasibility study is often the single most important factor in determining whether finance can be secured - and on what terms. Prime Project Fund works with project owners to understand the feasibility requirements for their specific project type and helps prepare and evaluate the necessary documentation.

What is a Feasibility Study?

A feasibility study is a comprehensive assessment of whether a proposed project is viable - commercially, financially, technically and operationally. It examines the market in which the project will operate, the projected revenues and costs, the technical requirements of the development, and the regulatory and environmental context. Feasibility studies are produced by specialist feasibility consultants and economists, drawing on market research, financial analysis, site analysis and sector expertise.

Types of Feasibility Studies

Large project finance applications typically require more than one type of feasibility assessment:

• Financial feasibility studies - analysis of projected revenues, costs, cash flows and investment returns
• Market feasibility studies - assessment of the market for the project's products or services
• Marketing feasibility - evaluation of how the project will attract and retain customers
• Technical feasibility - assessment of whether the project can be built as planned
• Economic feasibility - broader economic impact and land use economics analysis

Why Lenders Require Feasibility Studies

Lenders providing project finance from $10 million are taking significant risk. The feasibility study is the primary tool by which lenders assess whether that risk is acceptable. A well-prepared financial feasibility study demonstrates that the project will generate sufficient revenues to service the debt, cover operating costs and deliver an appropriate return. A strong market feasibility study confirms that the demand for the project's output is real, sustainable and sufficient to support the financial projections. Without robust feasibility documentation, even a promising project cannot secure the finance it requires.

Feasibility and Project Viability

Feasibility studies are closely linked to the broader question of project viability - whether the project is worth doing at all. A negative feasibility study is not necessarily a barrier to development; it may highlight areas where the project design, financial structure or revenue model can be improved to make the project viable. Feasibility consultants and economic consultants play a vital role in both assessing project viability and advising on how projects can be structured to improve their chances of financing.

How Prime Project Fund Approaches Feasibility

Prime Project Fund requires appropriate feasibility documentation for all project finance applications above $10 million. Our team reviews submitted feasibility studies as part of the initial project assessment process and can advise project owners on what additional documentation may be needed. For projects that do not yet have a complete feasibility study, we can refer project owners to appropriate feasibility consultants and economic consultants with relevant sector and regional expertise.

Apply for Project Finance

If your project has completed feasibility studies and is ready to seek finance from $10 million, Prime Project Fund invites you to submit your project details through our Funding Application. Brokers with qualifying projects to introduce can register through our Broker Application.