General Discussion Topics, page-54267

it’s secured against the assets of the project which generate the cashflow. The financier will take an interest in the receivables generated, as well as any other contractual rights within the project along with the assets. The financier lends against this.

that’s why offtake agreements are so important as it confirms committed cashflows to the project and acts as an anchor for payment subject to any performance related matters

the amount lent will typically be based on worst case scenario’s ie minimum termination/liquidation values, min committed cashflows etc .

financiers look at payback periods that’s why it’s important to be cashflow positive as soon as possible

If there is a shortfall in the financing structure sayona may need to stump up some cash or provide additional collateral to support the project financing.