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. The project report includes information that proves the potential of a project/business idea. A project report is mandatory for availing funds and loans from financial institutions and banks for business funding. It assists the entrepreneur in getting an accurate idea about the primary inputs required for the business. The project report is required even if 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 resource 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 a 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, or 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 are required
Who can make it?
The task and process of making an appropriate project report are crucial. Therefore, experts such as Chartered Accountants, professionals, and former bankers normally prepare project reports. It usually takes weeks to months to make one project report. But now it’s easy. With Finline you can make a project report within 10 minutes that too in your language.
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.
Also Read: Project Report Format for Bank Loan
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 approval 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 the assumptions made.
What if they reject your project report?
If the bank rejects the proposed project report for the loan, the business firm seeking the loan can prepare another project report and reapply or submit the project report to another bank or financial institution.
Failure to present a project report may result in rejection by the bank and then you have to reapply or reconsider the information entitled in the reports.
About Finline!
Finline is an online platform for creating financial reports for getting bank loans and investments. It’s like ‘Canva’ but for financials. If you are an entrepreneur looking for a bank loan, you need to have a well-crafted project report. We, at Finline will help you with that. Our team will help you create a powerful business plan in ten minutes. That too in your language. Also, all public and private sector banks working in India accept our project report. Click to create your report.
