Maks25
Active member
While a business plan shows you the process required to make your small idea into a huge success in the text, a financial model shows what that plan can achieve and possible limitations in financial terms. Even when a financial model is not a prerequisite to obtaining a bank loan, lenders will be more inclined to give funding to a business that has a clear approach on how it intends to spend the money, accounts for how it will pay back both the principal rate and the interests, and much more.
This also helps you as a business owner see exactly what is required of you to ensure a win for both the lenders and your business as a whole. From your projections, the bank will also be able to determine whether or not you will truly be able to pay back the loan at the due date or not.
This also helps you as a business owner see exactly what is required of you to ensure a win for both the lenders and your business as a whole. From your projections, the bank will also be able to determine whether or not you will truly be able to pay back the loan at the due date or not.
