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.

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.

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!

View a sample project report