Bank requirements for a business plan

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Business plan for the bank - success criteria

A high-quality business plan is a mandatory criterion in the package of documents for the provision of a credit line to a bank. Some banks have set their own standards for a document such as a business plan for a bank. We know their requirements thoroughly and carry out business plans using the following methods: - Sberbank; - Russian Agricultural Bank; - Rosagroleasing.

A successful business plan for a bank must meet the following conditions:

  • justify the competence and presence of a strong management team for the project;
  • prove that the projected cash flow is able to cover the loan and its payments;
  • should not contain so-called "stop factors" (data to justify the size of the market and the availability of demand are far-fetched, the presence of blunders in terms of the technical component of the project, unrealizable deadlines, insufficient project resources, etc.)
  • the business plan contains detailed calculations according to the bank's methodology, does not contain the so-called "water";
  • the project's ownership structure is "transparent";
  • the initiator has strong motivation to participate in the project, he invests his own funds in the project, ideally at least 20% of its cost;
  • the financial model is executed correctly
  • funding sources are structured and fully applied. For example, we considered the possibility of leasing, not only bank lending
  • the business plan contains a competent and clear summary

Let's dwell on the differences between leasing and credit in a little more detail.

The difference between a loan and leasing - in simple words

Leasing and credit are similar concepts, since both the first and the second allow you to purchase property with a lack of money. A business plan for a bank must necessarily take into account the possibility of financing and under a leasing scheme, if possible. This is their main and, perhaps, the only significant similarity. Now about the differences: 1. Leasing is getting property, while lending is getting money for this very property. Although, there is lending that allows you to get a thing immediately, without money. But this method has long faded into the background. 2. Banks are engaged in lending, and special leasing companies are engaged in leasing. 3. Leasing companies buy the necessary property to transfer it to the owner for a while. To be more precise, companies lease their property on a long-term basis. When you credit, the thing is, in fact, bought only in parts. And after the loan is paid off, the property does not need to be returned.

Leasing has a number of advantages. As already mentioned, banks are engaged in issuing loans. This means that everything from consideration to the last payment is made according to the clear instructions of the Central Bank. Banks do not have the right to deviate from these instructions, which is why obtaining a loan can take a lot of time and effort. In contrast, leasing companies are not subject to certain standards. They create for themselves instructions and rules that they themselves can ignore, in favor of the client. So, to obtain a loan, you will need to lose from 2 hours to 2 weeks of time. Leasing companies can approve an order in just 15 minutes. There are also differences in interest rates. Leasing requires 4 to 7%. Banks (loans) at least 11%. This is due to the fact that many banks are financed by the state, and leasing companies make up their own expenses and income. Because of this, such companies have a more flexible budget, and hence a payment schedule. Lending is taxed, while leasing is VAT only. And if a legal entity has used leasing, the VAT will be lower. For business. Many leasing companies provide incentives for start-up entrepreneurs + flexible payment schedule makes this method ideal for small businesses. So, the pros and cons of leasing: + it is possible to purchase second-hand property + the term for issuing property is from 5 to 10 years. + flexible schedule + lower interest rate + very fast processing of the application - when leasing, the person becomes the tenant, not the owner. This means that it cannot dispose of the property.

What indicators in the business plan are most interesting for the bank

In addition to the structure and content of such an important document as a business plan, the bank pays particular attention to such indicators of a business plan as the discount rate, DSCR (debt coverage ratio), NPV, IRR. The business plan should also contain a list of liquid assets of the project initiator (borrower) that the bank could leave as collateral. It should be remembered that these assets will be valued slightly below market value. A guarantor may also be required to approve a loan. The bank also pays attention to the indicators of the turnover of goods, the total debt burden, etc. In addition, the bank pays attention to which industry the initiator of the project belongs to, whether this industry is familiar to the bank. If efficiency indicators are more important for investors, the bank pays attention to the reliability indicators of the project initiator. The bank pays considerable attention to the marketing strategy of the project and the calculation of risks. Each indicator should be substantiated, each analytical statement should also be supported by relevant statistical data, data from industry experts, analysts, and appropriate documentation. For example, a good justification for demand is the presence of preliminary agreements with legal entities (contracts of intent), the presence of confirmed demand from individuals (a familiar industry for a bank, where it understands that there is demand).

Business plan for a bank: how to get a loan guaranteed

The market for lending, financing, banking services is constantly developing. Many people are interested in the business plan of a commercial bank. The opening of this enterprise is a responsible business that not everyone can do. But with a competent business project it is possible.

Relevance of this business

This business is relevant in our time. It requires serious investment. At the beginning of the activity of a small branch, at least 100,000,000 rubles will be required. To open a medium-sized company, you will need an amount several times higher.

Stages of organization (step by step guide / business plan)

Your bank business plan should reflect the following information:

The opening is carried out according to the organizational and legal form, implying a closed company of shareholders.

You need to decide what type of 5 your branch will be:

The retail bank provides a wide range of financial services, there is investment in various assets to reduce risks. Settlement organizations focus on providing settlement and cash services to customers. Market institutions invest their assets in securities, forming passive funds from personal reserves. Credit enterprises exist at the expense of the debts of their consumers, liabilities are taken from their own reserves. Organizations that receive their profit through interaction with other banks are representatives of interbank financial structures.

You need to prepare a business plan for the bank, including the following information:

It is necessary to indicate a plan for client and credit work.

Client search, advertising

To identify the target audience, you need to analyze the customer base. In terms of development, it is worth focusing on those consumers whose number is high in relation to a particular service. To attract interested customers, you can also create your own website, and using tools such as contextual advertising to find customers who are interested in your services. At the moment, it is the most effective tool for attracting new customers. You also need to work on brand awareness. When people start to recognize your brand, the entrepreneur will gain trust from the client.

From the data on the banking market as a whole, build development goals for the period from 1 to 5 years. Expect an increase in your customer base and services. You can attract consumers to a branch using Internet payments. The best advertisement is a won and justified trust among customers.

The purpose of preparing a business plan for the bank is to give the lender the opportunity to make sure that the idea is viable, cost-effective, and the project can generate a financial flow to cover loan obligations. Employees of credit departments always carefully assess the quality of the submitted business plan for compliance with the financial criteria of the bank, since an unsuccessfully prepared document is evidence of insufficient competence of loan applicants.

This document must be submitted to credit institutions in order to confirm the effectiveness of the idea outlined in it. NOST Group offers the development of high-quality business plans for banks.

A well-designed project describing all stages of organizing a new business or developing an existing one gives a clear idea of ​​how profitable an enterprise can become and how long it will take it to generate a flow of funds sufficient to cover loan obligations. Employees of financial institutions carefully evaluate business plans and determine how they meet the bank's criteria.

At the same time, clients should understand that even a project that is ideal at first glance may not pass the assessment and not get the "go-ahead" for a loan. The fact is that each bank has its own requirements for the content of business plans. Therefore, already at the stage of preparing a project, it is necessary to understand for what purpose it is being created and where it will be presented.

Key requirements for business plans prepared for banks

In most cases, the framework established for the consideration of loan applications for new projects is designed to protect financial institutions from the risk of default by the borrower. That is why a client applying for cooperation is required to confirm financial stability, as well as the amount of planned profit.

When evaluating business plans for bank employees, the following criteria are of paramount importance:

  • Having a realistic financial model.
  • The stability of the planned cash flow in the future.
  • Scenario analysis of business development (optimistic, realistic, pessimistic).
  • The presence of a pledge or surety.
  • The borrower has no obligations for other loans (if any, their volume).
  • For an existing enterprise - the volume of the average monthly turnover.
  • Project profitability.
  • Absolute validity.

Development of a business plan for Sberbank requirements

Development of a business plan for the requirements of the Russian Agricultural Bank

Development of a business plan for VTB requirements

The purpose of preparing a business plan for the bank is to give the lender the opportunity to make sure that the idea is viable, cost-effective, and the project can generate a financial flow to cover loan obligations. Employees of credit departments always carefully assess the quality of the submitted business plan for compliance with the financial criteria of the bank, since an unsuccessfully prepared document is evidence of insufficient competence of loan applicants.

  • Key requirements for business plans prepared for banks?
  • Consideration of a business plan for a bank: a list of stop factors
  • Errors when preparing a business plan for a bank

This document must be submitted to credit institutions in order to confirm the effectiveness of the idea outlined in it. NOST Group offers the development of high-quality business plans for banks.

A well-designed project describing all stages of organizing a new business or developing an existing one gives a clear idea of ​​how profitable an enterprise can become and how long it will take it to generate a flow of funds sufficient to cover loan obligations. Employees of financial institutions carefully evaluate business plans and determine how they meet the bank's criteria.

At the same time, clients should understand that even a project that is ideal at first glance may not pass the assessment and not get the "go-ahead" for a loan. The fact is that each bank has its own requirements for the content of business plans. Therefore, already at the stage of preparing a project, it is necessary to understand for what purpose it is being created and where it will be presented.

Key requirements for business plans prepared for banks

In most cases, the framework established for the consideration of loan applications for new projects is designed to protect financial institutions from the risk of default by the borrower. That is why a client applying for cooperation is required to confirm financial stability, as well as the amount of planned profit.

When evaluating business plans for bank employees, the following criteria are of paramount importance:

  • Having a realistic financial model.
  • The stability of the planned cash flow in the future.
  • Scenario analysis of business development (optimistic, realistic, pessimistic).
  • The presence of a pledge or surety.
  • The borrower has no obligations for other loans (if any, their volume).
  • For an existing enterprise - the volume of the average monthly turnover.
  • Project profitability.
  • Absolute validity.

Development of a business plan for Sberbank requirements

Development of a business plan for the requirements of the Russian Agricultural Bank

Development of a business plan for VTB requirements

Banking business is a very profitable, but at the same time, a very difficult line of business. Give him preference only to the entrepreneur who has really serious experience in business, the necessary knowledge, as well as the ability to make large-scale financial investments. The bank's business plan with calculations will be considered below, in which we will reflect the main points that are important to you.

Bank's business plan: who should do this type of business

Usually, really experienced and respectable investors go to open their own banking organization. This is done in order to service and finance the main enterprise.

Today the banking sector in Russia is represented by a large number of organizations: among them as small, only serious banks. The high level of competition should be noted right away. However, we must not forget about the high level of demand - an increasing number of customers prefer banking products and services, which means that this business has prospects for success. Opening a bank in the Russian Federation will not be easy due to serious bureaucratic red tape, the need for a large amount of investment, as well as the need to resolve many other issues. In this case, a well-thought-out business plan comes to the rescue, which is based on analytics of enterprise development. The forecast should be carried out in several directions at once:

  • foreign market;
  • legislative base in the segment;
  • projected level of sales;
  • potential consumer of products and services;
  • assessment of direct and indirect competitors;
  • forecasting the position of a banking organization in the country's financial market.

A forecast can be made for the next several years, for example, for 3 years or 5. During this time, it is necessary to set objective goals for yourself. This can be brand positioning in the market and gaining a positive reputation among customers, expanding the range of services, creating your own credit policy, and so on.

Types of banking organizations: which one to give preference

Many aspiring entrepreneurs do not even realize that there are several types of banking organizations. Having considered them in more detail, it becomes possible to choose exactly the direction of services that will be most beneficial for you. Today, there are five main types of banking institutions:

  • Credit organization. In these establishments, bank funds act as an asset, and customer debt as liabilities.
  • Retail banks. The main advantage of such institutions is the ability to provide a full range of financial services to their clients. One of the differences from other types of organizations is asset diversification.
  • Market organizations. The main areas of activity are investments of funds in securities.
  • Settlement banks. Basically, they work with individuals, offer their customers a full list of settlement services.
  • Interbank organizations. A separate category of companies that interact with banking and financial organizations, providing services. As a result, profit from operations is obtained.

Many novice investors prefer a universal type of banking institution. So, they believe that they can work in several directions at once. However, this seriously complicates obtaining a license, which will indicate in detail which operations the bank is entitled to carry out. The license can be changed after 2 years on the market.

Organizational and legal issues

Before you start studying a business plan for opening a bank, as well as start thinking about its internal structure, analyze your strengths and capabilities. First of all, it is important to understand that an entrepreneur alone is unlikely to cope with this process. As a rule, the work is divided into several founders. Both you and other founders must have a certain amount of money on hand.

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