Business plans are presented to Borrowers in cases where the credit is granted for purposes related to the organization of new production, expansion of production, trade areas and the service sector, the development of manufacture of new kinds of products (goods), the purchase of new or modernization of existing equipment and other goals aimed at increasing production of goods.
Feasibility study of credit is submitted in cases where the loan is granted for purchase of goods for subsequent sale (commercial transaction) or for the provision of services.
In business plans and feasibility study must include:
1. The Executive summary contains an outline of the proposed lending the project, the recipient of the borrowed funds.
The summary must include:
the purpose of preparing a business plan;
summary of the proposed project crediting;
General description of the company;
creation date, location of the enterprise, legal form of organization, names of managers:
the main activity, its products and services;
strategy and tactics of the enterprise;
the share of presence in the market;
the analysis of conditions of activity of the enterprise (external and internal factors that contribute to development activities);
organizational structure of the company indicating the major units;
a list of subdivisions;
the number of staff;
qualifications and education of staff.
2. The submission of the project description describe in detail the characteristics of the activities associated with the project
description of the project;
description of products/services, its purpose and uniqueness;
qualitative and quantitative characteristics;
the main consumers and competitors;
the duration of the project;
partners and contractors.
3. Marketing research
Marketing research should include the necessary information about the product (service), conditions that develop in this segment of the market – on the demand and the market perspective, the competitive environment, the position of the company and its products or services. It should be stated here:
the total capacity of the segment of the market;
the main consumers and producers;
the degree of saturation of the market of similar goods;
indicative costs for implementation;
methods of promotion of a product/service in the market;
the sales tactics.
4. The production plan
In the production plan set out the main stages of the production cycle:
characteristics of the production;
the main sources of raw materials (primary producers, their pricing policy);
the composition and amount of fixed and variable costs.
5. Other information
In the section describing the implementation of the project management, shall contain information about:
capital and legal form of the project;
the organizational structure;
the choice of strategic partners;
competence of the personnel.
6. Financial plan
The financial plan should reflect the following information:
the cost of the project (fixed and variable);
planned income (taking into account the amount and cost of funds); equity: the amount of own resources participating in the project, and attracted resources, their characteristics (form of attraction, size, sources);
the organization of settlements;
the chart of cash flow.
Each position of the business plan should be confirmed.
Borrowers with a large range of products (goods) or a wide range of services, which are provided with loans for productive purposes (for payment of raw materials and basic materials, services rendered and other costs) represent the cash flow forecasts.