How to draw up a business plan for a bank
Video: How to Write a Business Plan - Entrepreneurship 101 2024, July
When lending to legal entities and individual entrepreneurs, the bank has the right to demand from the potential borrower a business plan for the project for which borrowed funds are requested. And this is entirely justified, because the bank must be sure of the solvency and profitability of its client.
Instruction manual
1
In principle, the business plan that is necessary for the bank does not differ from the typical business plan a. Although you will have to adapt to the requirements of some commercial institutions, if they present their requirements for the development of this document.
2
Be sure to disclose the answers to the following questions in the business plan for the bank:
- what deserves attention this business project;
- whether he is able to give the desired results;
- in what ways it can be implemented.
3
To do this, put the information in several generalizing blocks:
- activities that need to be carried out to achieve the goal;
- the amount of necessary costs (initial and current);
- payback periods and estimated profits.
Based on these data, the bank should determine the main financial and economic indicators of the project, the necessary investments and results.
4
Sort information by item. As a rule, banks require a business plan that has the following content:
- title page;
- a brief description of the project;
- characteristics of the enterprise;, - market research, competitors, consumers and prices;
- the time required for the implementation of the event, including the schedule;
- costs of creating a project and ongoing activities;
- sources of financing costs;
- assortment, pricing policy and income of the enterprise;
- a brief conclusion;
- applications.
5
Make a business plan in such a way that after its consideration, the bank assesses the ability of your company to generate cash flow for timely settlement of a loan. In addition, he must assess the availability and quality of collateral for the loan (collateral), so that the risk of loan default in case of unsuccessful business development is minimal.
6
Remember that the bank first of all pays attention to the current situation at the enterprise. Therefore, he will analyze the balance sheet, statement of cash flows, statement of profit and loss. Less attention is usually paid to the potential of the project and its future capabilities.
