Information from different aspects like technical, financial, economic, production, and managerial are important for any business. They play a significant role in the business phases of startup, growth, and expansion.
What is a Project Report?
A written document associated with forecasting future income & expenditure and its financial viability. It includes information proving the potential of a project/business idea is known as the project report. It is mandatory for availing funds and loans from financial institutions and banks for business fundings. It assists the entrepreneur to get an accurate idea about the primary inputs required for the business. The project report is required even the business is new and just started.
The project report significantly contains details about the financial, economic, managerial, production, and technical aspects of the business. This also includes in-depth information & analysis about resources requirements such as production, machinery, manufacturing process, manufacturing capacity, the requirement of raw materials, manpower, power and water, and other business-related expenses.
Is it mandatory?
A business needs to present the project report for bank loans including business plan, projected financials, viability study, technical analysis, etc, for availing loan. Likewise, for a startup, a project report is the first important document that needs to be handy whenever they are seeking any kind of funding from VC, private equity.
The project report should be presented in the accepted format such as the CMA data format for bank loans. However, the project report format for bank loans depends on the type of loan as well. Concerning small loan schemes such as the Mudra loan, it is just a basic form of project report where only financial projections for three years is required
Who can make it?
The task and process of making an appropriate project report are crucial. Therefore, the project reports for Bank loans are conventionally prepared by experts CAs, Professionals, Ex-Bankers. Now in these difficult times of covid restrictions, no need to go outside or meet anyone. You can make a project report with Finline online tool at an affordable cost with a customizable option.
Why Professionally made Project Report?
It is a very essential document to create an opinion about the future performance of a company/business.
1. Availing of the working capital loan, term loan, and other loans from banks or financial institutions.
2. Making a presentation to get the equity participation of the investor.
3. Structuring/restructuring bank loan / financial and business strategies of the firm.
4. Buying, taking over or starting a new business.
5. Making proper disposal of an existing business.
6. Assessing the value of the project or the business.
Why Bank verify the Information?
The bank must verify the financial aspects and other information displayed in the project report before dispensing the loan to the business. Accordingly, it is recommended to prepare an excellent project report for a bank loan with all the inevitable details regarding the financial projects of the business. However, the data provided in financial projections are just based on a base judgment basis and cannot be verified. Still, bankers need to check the feasibility of assumptions made.
What if your project report gets rejected?
If the proposed project report for the bank loan somehow gets rejected by the bank, then the business firm demanding the loan may prepare another project report and reapply or may apply with the project report to any other bank or financial institution.
Failure in presenting a project report may result in rejection by the bank and then you have to reapply or reconsider the information entitled in the reports. With Finline you don’t have to be a financial superstar for creating the right project report to get the loan. Make use of Finline’s online tool for making an appropriate Project report / Business plan in less than 10 minutes with a customizable option.