You must have a bankable project in order to access funding

You must have a bankable project in order to access funding

In business venture you reach a phase when you must have some money to acquire certain resources. For example if you are putting up a factory you need money to buy land or  to pay professional advisors and  contractors  or money  to buy raw and equipment to put in the factory. You can access money for investment through a combination of the following;

  • Personal saving
  • Family savings
  • Savings and Credit Societies
  • Loans from friends
  • Loans from banks

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Bankable projects attract funding

A bankable project is that which meets the conditions of   sufficient security, sustainable future cash flows and high chances of success acceptable to  the investors. The project must also meet other conditions specified by various regulatory authorities. The project must give positive return to the investors within the shortest time possible. Bankable projects are quite attractive to the investors and they will attract cheap funding due to the suppliers of finance competing for it.

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Feasibility study and business plan

It is a project for  which  feasibility study has been conducted  and business plan  formulated . The information  normally contained in the feasibility and business plan include the following among others;

  • Legal form of ownership
  • Location and business case
  • Project implementation team
  • Governance structure
  • Market analysis and marketing plan
  • Project Risk assessment
  • Cash flow projections
  • Viability of the project

The feasibility   study and cost benefit analysis/business plan  makes it easy to assess the viability of the project by potential investors .

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Author

John Muhaise Bikalemesa

Director: Big Drum Advisory Services Limited

john.muhaise@bigdrumassociates.com

 

 

 

 

 

 

 

 

 

 

 

 

 

 

About The Author

John Muhaise-Bikalemesa (JMB), is the founder of Muhaise.com blog and bigdrumassociates.com company. Learn more about him here and connect with him on his social medias below

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