A structured financial scheme is very important to be formed because when a decision on project financing is to be made, a company requires an exceptional amount of knowledge and funds for this kind of scheme. The features of such Project Financing are as follows:

• Capital Intensive Financing Scheme:
  Project Financing is most fitting with projects that are in requirement of large amounts of funding including debt or equity financing. These schemes of project financing are more often implemented in developing countries instead of already developed countries because these projects financing helps in booming and growing the economy of the developing country. Although, these schemes usually come at a higher interest rate than normal corporate loans which also leads to an increase in the total cost of the project and reduces the liquidity as well. These projects that adopt these schemes of project financing usually entertain a higher emerging market risk and political risk that is why these projects are charged an extremely high premium.
• Risk Allocation:
  When forming a financial plan there could be various risks that can be faced by the lender, so the lenders initially find the risk they may germinate with each project before funding it. But the lenders also receive higher premiums with Project Financing, so the high risk has its higher premiums.
• Multiple Participants Applicable:
  A Project Financing project is usually an extremely large-scale project therefore for better functioning and effective completion of the project numerous parties are allocated in the project to follow up on different aspects involved in the project. This method helps in the smooth operation of the entire process of the completion of such a project.
• Asset Ownership is decided after Project completion:
  The Special Purpose Vehicle is responsible to overview the proceeding of the entire operations of the project while also tracking all the assets included in the project. After the completion of the project, the ownership of it depends on the terms that were previously decided during the terms of the loan.
• Zero or Limited Recourse Financing Solution:
  In a Project Financing project the ownership of the entire project is not given to the borrower until the project is completed, this way the lender of the funds do not have to be anxious about evaluating the asset and credibility of the borrower or spend resources in finding that out. The lenders therefore only must focus on the feasibility of the project. This is also an advantage to the lender in a scenario where the project after completion is not able to generate enough cash to repay the loan.
• Loan Repayment with Project Cash Flow:
  In Project Financing the terms of the loan describes that the surplus cash that is received from the lender to the project must be first used to pay off the outstanding debt that the borrower has. Once the debt of the project is paid off the risk exposure of the project also reduces for the lender or financial services company.
• Better Tax Treatment:
  By implementing Project Financing, both the sponsor of the project and the project itself can find much better tax treatments for themselves. Therefore, a lot of sponsors choose this type of financing scheme to avail of the tax benefits for long term projects.
• Sponsor Credit Has No Impact on Project:
  These long-term financing projects make sure that the credit standing of the sponsor does not have any negative impact on the project while the financing plan maximizes the leverage of the project. Thus, the credit risk of the project is much better than the credit standings of the sponsor.