To start a new business, expand an existing business or to make up for a short fall in operating capital, a project finance or business loan may be required in all of these circumstances.
For running an industry or a Concern, two types of capital are required viz., fixed capital (long term fund i.e equity, Term Loan, Debenture etc.) and working capital. Fixed Capital is utilized for acquiring the fixed assets such as land, building, plant & machinery, etc., and to meet capital expenditure connected with the setting to keep the wheels moving up of the industry or Concern.
A Project Report is a living document that maps out the details of your new project/business. It covers what your business will sell, how it will be structured, what the market looks like, how you plan to sell your product or service, what funding you’ll need, what your financial projections are, and which licences, leases, and other documentation will be required.
Our financial experience is available to you to help you put together a well-considered project report which will allow you to plan and formulate realistic and accurate forecasts.
For assessing the working capital needs of an organization, bank follows CMA (Credit Monitoring Arrangement). It is required by banks and other financial institutions, to introspect or comparative study (previous, current & next FY) of balance sheet and other financial statements of a body corporate for financing their projects. In other words it is the detailed explanation of the balance sheet and other financial ratios of the firm or any other corporate.
Most business will need to seek finance from external sources, the most common route being bank loans or finance. When approaching a bank for a loan or overdraft your prospects are likely to be much better if the bank is reassured that you have good financial information and disciplines in place and that you use the information you have well.
Approaching a bank with already a well drafted proposal is not only increase the chances of securing finance but also reduce the turn around time of sanctioning the loan. A draft proposal completes all the information required by the banks.