In this article, we will discuss, how to make a compelling Project and CMA (Credit Monitoring Arrangement) Report that can significantly enhance your chances of securing a Business Loan from any bank in India
Why is a Project and CMA Report Needed?
In the current highly competitive business environment, expanding your operations is no longer just an ambition but a necessity for entrepreneurs looking to thrive. Securing a business loan is a common strategy to fuel this expansion.
However, the loan approval process is not as straightforward as many might hope. This is where the importance of well-prepared Project and CMA (Credit Monitoring Arrangement) Reports comes into play. In India, virtually all banks require entrepreneurs to submit this Report when applying for a business loan. This report is an essential tool that enables banks to assess the feasibility and risk associated with the loan request.
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Do I need Finance / Accounting Knowledge to make Project & CMA Report for my Loan?
Creating a Project & Credit Monitoring Arrangement (CMA) Report for your loan application might seem like a task requiring deep financial or accounting knowledge, particularly when aiming to meet the high standards set by Indian banks.
Complicated Financial Statements like Balance Sheets, Cash Flow Statements, Ratios, etc are to be prepared as a part of the Report. Usually, a solid understanding of finance and accounting is deemed necessary to ensure the accuracy and thoroughness of these Statements.
However, times are changing. Today, advanced online software tools are making this process much more accessible, even for those without a financial background. Our Online platform, tailored specifically for the Indian business environment, is a prime example of this. It has been designed specifically to enable entrepreneurs to make a complete Report themselves in an easy & precise manner.
How to Make Project & CMA Report yourself
Firstly, head on to our website fortriskconsulting.com, and click the free sign-up button. After signing up, log in to your account.
Click on the Existing Business Option. Now you have two options, either you can enter the details online or you can use the Excel utility option. We will use the Excel option.
Download the Excel utility. After opening the Excel file, on the first page, you will see some instructions on how to fill up the utility file. Click on next.
Now in business details, enter the basic details of your business as required.
If you are going to apply for a Cash Credit / Overdraft loan, then enter the Loan limit amount in the Working Capital Loan field. If you are going to apply for a Term Loan then enter the Loan amount in the Term Loan field and choose the loan repayment period from the drop-down options.
On the next page, enter some personal details of the business owner, if there is more than one owner, then you can also enter their details by clicking the additional number of Owner option. After filling up the Business owner details, Click next.
Now, enter the data as per your past 2 years’ Profit and Loss Account & Balance Sheet data. If you have data of only One past year, then enter past 1 year actual data in the 1st column and estimated values in the 2nd year column.
Once you have entered your Balance sheet values, make sure that the Balance Sheet Liabilities total matches with the Balance Sheet Asset total of that year.
If you have the opening stock of inventories then enter its values in the next sheet here. You will find your Opening stock values in your Trading or Profit and Loss account.
Now, click save and then click on the Generate Report Button here. You will be directed to our online software page. Click the ‘Excel Utility’ button again and click the ‘Upload Excel’ button. Now upload the filled Excel utility file from your computer and then the Generate Report button will appear which you have to click. Now you can Download your Project & CMA Report.
A Project & CMA Report is compulsory if you need a Bank Loan to expand your Business. This report offers a comprehensive view of a company’s financial position, giving lenders the confidence to invest.
With our state-of-the-art software, you can now easily make a professional-quality report at a fraction of the cost and make your loan application process much easier.
So go ahead and try our software for free and make our Project report your launchpad to scale your business to new heights.
