Project reports for bank loans
When a new business entity or an existing entity in need of expansion requires funds, they may have to approach a bank or a financial institution. Such bank is called a stakeholder because they are staking their money in your business and wants to be sure of return of their principal along with interest. Hence they are required to know about:
- Details about the promoters such as educational qualifications and experience,
- Product /service line – What you will sell to customers
- Location details – Were you are going to start the unit, its specialty etc
- Machinery details – Details of your machinery along with quotations
- Raw materials used (if any), for example cloth in a garment unit
- Labour wages, employee salaries
- Market potential– How potential is your market? Competitors, orders on hand etc
- Project cost – Total money (promoter contribution + bank share)
- Projected balance sheets of assets and liabilities for the term of loan
- Projected statements profit or loss
- Projected statements cash flow
- Various ratios indicating that promoter can repay monthly EMI and financial strength
- Conclusion etc