Wait, are you confused with how to create a project report for bank loan in Excel? I’ve got the solution!
A project report is one of the documents that the bank will certainly request you to provide in case you decide to obtain a bank loan. When listen some terms as the financial model, financial forecast, or Excel formulas, many (or most) people are scared. However, the fact is that, one of the most convenient and open formats to present the business plan to the banks are Excel, Pdf, etc….
Let us get it all simplified.
What Is a Project Report for Bank Loan in Excel?
Bank loan project report is a document that explains:
- What your business is
- How much money you need
- How you will use that money
- The way you will make profits and how you will repay the loan.
When this report is made in Excel, all the numbers are linked with the help of formulas. This means:
- When one of the numbers is altered the entire report is automatically updated.
- Calculation errors are reduced.
- Banks get actual insight into the financial activities of your business.
Banks prefer Excel-based reports because they are transparent, editable, and easy to verify. Unlike static PDFs, Excel shows the logic behind every calculation. Check the exact project report format for bank loan here!
What Key Financial Sheets Are Mandatory in a Bank Loan Project Report in Excel?
An appropriate project report is not any single sheet. It constitutes a set of financial statements which tell about your business.
The primary sheets normally contain:
- Cost of Project- What is the amount of money required to start or develop.
- Means of Finance– Own investment and bank loan details.
- Profit and Loss Statement- Anticipated revenues and expenditures.
- Cash Flow Statement -Where the money comes in and out on an annual basis.
- Balance Sheet- Assets, liabilities and business value.
- Break even Analysis- When your business would begin making a profit.
How Does an Excel-Based Financial Model Improve Loan Approval Chances?
The reason why banks do not grant loans is not due to low income. The vast majority of rejection occurs because of unreliable or ambiguous financial information.
This is useful as a financial model of an Excel format assists because:
- The calculations are automatic and correct.
- It is evident that there are assumptions.
- Bank officers are able to check numbers fast.
- Predictions appear to be more realistic and professional.
When a clean Excel is presented to the banks, they develop confidence that the borrower is aware of his or her business and with their ability to repay.
What Makes a Complete Project Report for Bank Loan in Excel with Formulas Different?
Most individuals write project reports which appear beautiful but cannot be logically applied. A complete project report in Excel with formulas to bank loan is unique in the sense that:
- All totals are formula based.
- Balance sheet, cash flow and profit are interrelated.
- The EMI and interest on loans are automated.
- Alterations in sales or costs are felt everywhere.
This form of reporting is dynamic. It demonstrates to the bank that your business plan has not been developed out of thin air but that it has appropriate financial reasoning. Check how to create project report format in Excel here!
How Are Financial Forecasts Prepared Inside a Project Report for Bank Loan in Excel?
Simple explanations envisage that forecasts bring forth future estimates.
Forecasts are made in Excel based project report using:
- Projected sales in a month or annually.
- Rent, salary, electricity-operating costs.
- Year by year growth percentage.
- Loan repayment schedule
Banks normally require 3-5 years of projections. Profits or cash flow can be easily changed with the use of Excel and the results are observed immediately.
What Common Mistakes Should You Avoid While Creating a Project Report for Bank Loan in Excel?
A vast number of loan applications are rejected due to minute yet critical errors i.e.:
- Formulas are replaced by manual calculations.
- Cash flow negative but profit reported.
- Impractical sales advancement figures.
- EMI on loans less than that of banks.
- This is as a result of poor formatting that would baffle bank officers.
These are mistakes that should be avoided, as much as the preparation of the report itself.
How Can Finline Help You Create a Bank-Ready Project Report in Excel Faster?
Preparing a project report for bank loan in Excel takes financial knowledge, banking understanding, and accuracy. That’s where Finline comes in. Finline assists the business owners by:
- Producing bank-approved excel project reports.
- Working with having ready financial models using relevant formulas.
- Reducing time and calculator errors.
- Preparation of reports that are appropriate to nationalized and privately owned banks.
Finline has more than 7 years of experience to make complex financial reporting into a simple, clear and acceptable report to the banks, particularly to the individuals who do not have a financial background. So, everyone can easily create the reports by using finline in less than minutes. Create your project report for bank loan now!
