If you need a bank loan to start your dream business, a project report is a necessary document. Struggling to make one? Don’t know the format for the project report? Don’t worry, you are at the right place!
In this blog, we will discuss about:
1) What is a project report?
2) Why do you need it?
3) How can you prepare a convincing project report?
1) What is a project report?
A project report is a mandatory document that outlines different aspects of the business or startup project. It should contain the project’s details, feasibility, and financial requirements. Here comes the next question, why does someone need this?
2) Why do you need it?
There are several reasons which show project reports as a must. Some of them are listed below:
- Project reports will help the bank assess your project’s success rate and can thereby make sure that you can repay the loan.
- It will help the bank understand the project’s risks and rewards.
- Submitting a decent project report shows the lender that you have done enough homework and is serious about the project. The project report also provides information about your qualifications and experience.
3) How can you prepare a convincing project report?
The format of a project report varies from loan to loan. However, a strong and convincing project report should contain the following:
- Executive summary: An executive summary is a short summary containing the business’s overall status. It should be concise and should provide an overview of the entire project.
- Project description: It should explain the project’s nature, purpose, scope etc.
- Details of promoters: The details of the promoter’s skills, qualifications and experience should be mentioned.
- Details of Employees: Like the promoters, the details of the employee’s skills, qualifications and experience should also be mentioned.
- Production plan: This includes the details such as plant and machinery, raw material used and steps in the manufacturing process.
- Market analysis: It conducts research about the market to understand the demand for your product and services.
- Marketing plan: This provides the details about the marketing and sales strategies of your product/service.
- Project cost estimation: It’s the estimated expense that arises at the time of building the project.
- Balance sheet: All accounts will be visible on the balance sheet so that the lender can see where the money was spent.
- Profit and loss account: It shows whether the company is making a profit or a loss.
- Cash flow statement: It allows the lender to understand whether you have the ability to repay the loan.
- Loan repayment plan: This section should provide a well-defined plan for repayment of the loan.
- Break-Even point evaluations: It shows the point at which the project revenue equals its expenses.
- Conclusion: Lastly, Conclude the report by summarizing the key strengths of the project. Make it short and compelling.
Still, having trouble creating one? Let us help you. Our expert team at Finline helps you craft a compelling project report in less than 10 minutes. That too in your language. Our reports are accepted by all public and private sector banks working in India. Click to create your report.
Now there is nothing stopping you from starting your dream business. Begin your journey with Finline right away!