When lending to legal entities and individual entrepreneurs, the bank has the right to demand from a potential borrower a business plan of the project for which borrowed funds are requested. And this is quite justified, because the bank must be confident in the solvency and profitability of its client.
Instructions
Step 1
Basically, a business plan that is required for a bank does not differ from a typical business plan. Although you will have to adapt to the requirements of some commercial institutions, if they have their own requirements for the development of this document.
Step 2
Be sure to disclose the answers to the following questions in the business plan for the bank:
- what this business project deserves;
- whether he is able to give the desired results;
- what ways it can be implemented.
Step 3
To do this, place information in several generalizing blocks:
- activities that need to be carried out to achieve the goal;
- the amount of required costs (initial and current);
- payback periods and estimated profit.
Based on these data, the bank must determine the main financial and economic indicators of the project, the necessary investments and results.
Step 4
Distribute the information point by point. Typically, banks require a business plan that contains the following content:
- title page;
- a brief description of the project;
- characteristics of the enterprise;, - market research, competitors, consumers and prices;
- terms required for the implementation of the event, including the timetable;
- the cost of creating a project and current activities;
- sources of financing costs;
- assortment, pricing policy and income of the enterprise;
- short conclusion;
- applications.
Step 5
Make a business plan in such a way that, after reviewing it, the bank assesses the ability of your company to generate cash flow for the timely calculation of the loan. In addition, he must assess the availability and quality of collateral for the loan (collateral) so that the risk of loan defaults in case of unsuccessful business development is minimal.
Step 6
Remember that the bank first of all pays attention to the current situation in the enterprise. Therefore, he will analyze the balance sheet, cash flow statement, income statement. Less attention is usually paid to the potential of the project and its future opportunities.
