R K Associates, Financial Services are the economic services provided by the finance industry, which encompasses a broad range of businesses that manage money, including credit unions, banks, insurance companies, accountancy companies, consumer-finance companies, individual managers and some government-sponsored enterprises.
If you have started a new business or expending an existing business, you need to prepare project report to get financing from a bank or any other financial institution.
It is not always expending the business or starting a business that requires external financing but also working capital requirement warrants for a financial assistance.
Normally when you apply for a loan from bank, you are asked for different set of documents. I am listing few key documents that banks require you to provide them.
• Project Report
• Income Tax filing documents
• Financial statements
• Details of existing liabilities
What is a project report?
Project report is a detailed statement which lists down the upcoming costs and revenues covering quantitative and qualitative aspects of the project being considered for reporting.
This was a layman explanation and for financing purpose. Different type of project reports are prepared for different purpose.
What details should be covered in a project report for bank loan?
A project report should contain key matters such as details about project, capital requirement, utilization of funds, expected return on investment, break even period, expected revenue and expenses over a period of time.
To be straight forward, a project report should be appealing enough to sanctioning authority to sanction your loan.
In some cases, banks do not require a details project report, instead they are happy with 2 sheets of projected profit &loss account and balance sheet.