A Business Plan Model for Micro finance Loan

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This is a Business Plan Model for Micro finance Loan. It’s a sample microfinance business plan. In fact, it’s a business plan template for a money-lending company. Therefore, when there is a need for a strategic plan for microfinance business this model is the benchmark. As a matter of fact, this Business Plan Model for Microfinance Loan meets the industry standard. Please, get a Business Plan Model for Micro finance Loan

Therefore, are you in need of a loan from any microfinance bank? And you desire a business plan that meets the industry standard? This Business Plan Model for Microfinance loans is what you need. Our first attempt here is to define the industry you want to borrow from.

What is Microfinance Bank?

Table of Contents

As a matter of fact, microfinance is a category of financial services targeting individuals and small businesses. One peculiar thing about these small businesses is that their mode of operation makes them lack access to conventional banking and related services. In fact, microfinance institutions include microcredit, the provision of small loans to poor clients; savings and checking accounts; micro-insurance; and payment systems, among other branches. Read more about A Business Plan Model for Micro finance Loan

By its nature, microfinance services are designed to reach excluded customers by regular financial institutions. These excluded groups include the usually poorer population segments, possibly socially marginalized, or geographically more isolated. Microfinance caters for and helps them become self-sufficient.

It’s advocated that microfinance should have a better understanding of the microfinance ecosystem so that the microfinance institutions and other facilitators can formulate sustainable strategies that will help create social benefits through better service delivery to the low-income population.

Peculiar Content: Read more about A Business Plan Model for Micro finance Loan

A Business Plan Model for Microfinance Loan must emphasize these topic items of the business.

Introduction of your business
Executive Summary
Product and Services
Your competition,
The Management Team
SWOT Analysis
CAPEX and OPEX assumptions
Working capital assumptions
Turnover and Cost of sales assumptions
The financial model

Peculiar Financial Model: A Business Plan Model for Micro finance Loan

We would want you to go through this attached sample financial model and make comments. You can ask questions through the comment box.

Projected Profit and Loss

	FY2021	FY2022	FY2023
Revenue	N195,600,000	N195,600,000	N195,600,000

Direct Costs	N28,368,000	N29,491,200	N30,756,960

Gross Margin	N167,232,000	N166,108,800	N164,843,040
Gross Margin %	85%	85%	84%
Operating Expenses
Salaries & Wages	N1,920,000	N2,208,000	N2,539,200
Employee Related Expenses	N384,000	N441,600	N507,840
Rent	N120,000	N120,000	N120,000
Marketing	N18,000	N18,000	N18,000
Others	N96,000	N96,000	N96,000
Total Operating Expenses	N2,538,000	N2,883,600	N3,281,040

Operating Income	N164,694,000	N163,225,200	N161,562,000

Interest Incurred
Depreciation and Amortization	N1,575,000	N1,575,000	N1,575,000
Gain or Loss from Sale of Assets
Income Taxes	N57,091,650	N56,577,570	N55,995,450
Total Expenses	N89,572,650	N90,527,370	N91,608,450
Net Profit	N106,027,350	N105,072,630	N103,991,550
Net Profit / Sales	54%	54%	53%

Business plan CAPEX and OPEX assumptions for loan applications:

Creating a business plan with CAPEX (Capital Expenditures) and OPEX (Operating Expenditures) assumptions is crucial when applying for a loan. Lenders want to understand how you plan to use the borrowed funds and how you’ll manage ongoing expenses. So, we present here a general outline of what you should include in these sections:

CAPEX Assumptions:

Overview of Capital Expenditures: Provide a brief explanation of what capital expenditures are and why they are important for your business.
List of Capital Expenditures: Enumerate the major capital expenditures you plan to make using the loan. Include items such as equipment, machinery, vehicles, technology infrastructure, facilities improvement, etc.
Description of Each Expenditure: Provide a detailed description of each capital expenditure item, explaining how it will benefit your business operations and contribute to growth.
Cost Breakdown: Break down the cost of each item, including purchase price, installation, setup, and any other associated expenses.
Timeline: Outline when each capital expenditure will occur. This could be over the course of several years or months, depending on your business needs.
Depreciation: Explain how you plan to account for the depreciation of these assets in your financial statements.
Return on Investment (ROI): Estimate the expected ROI for each capital expenditure. How will these investments contribute to increased revenue or reduced costs?
Read more about A Business Plan Model for Micro finance Loan

OPEX Assumptions:

Operating Expenses Overview: Briefly introduce operating expenses and their significance in running your business.
List of Operating Expenses: Provide a breakdown of your anticipated ongoing expenses, including items like salaries, rent, utilities, marketing, insurance, and more.
Description of Each Expense: Explain the purpose of each expense and how it supports your business operations.
Cost Estimations: Estimate the monthly or annual cost for each operating expense. Be as accurate as possible based on market research or historical data.
Assumptions and Justifications: Provide the reasoning behind each expense estimation. This could include industry benchmarks, quotes from suppliers, or historical expenditure data.
Variable vs. Fixed Costs: Differentiate between variable (costs that change based on production or sales levels) and fixed costs (constant regardless of output).
Contingency Plans: Mention any contingency plans you have in place to address unexpected increases in operating expenses or changes in market conditions.
Growth and Expansion: Explain how your operating expenses might change as your business grows. Will new hires be necessary? Will marketing expenses increase?
Profitability Analysis: Discuss how your projected revenue will cover your operating expenses and lead to profitability.
Order A Business Plan Model for Micro finance Loan from us.

It’s important to note that both CAPEX and OPEX projections should be well-researched and realistic. Back up your assumptions with data wherever possible. Lenders want to see that you’ve thought through your financial needs comprehensively and that the loan will be used effectively to drive business growth.

It might also be helpful to work with a financial advisor or accountant to ensure the accuracy and credibility of your projections. We are CFMC Limited, a team of Chartered Accountants ready to provide assistance to you.

What Next For A Business Plan Model for Micro finance Loan?

In conclusion, you have to make a decision on the type of loan you desire. We provide Entrepreneurship Development guides. We also assist you in getting all the necessary documents required to secure the loan.

In fact, other business support services are available. Therefore, we will assist you implement a bankable business plan and other business support services commercially. For example, we will register your business with CAC if you don’t have any now. Therefore, find out what we can do for you here. Our target i to make your business get to the next level.

Our Service Offering For A Business Plan Model for Micro finance Loan

Therefore, to support you in this exercise, Complete Full Marks Consultants Limited offers;

Entrepreneurship training
CAC registration services
Business plan development
Profiling of applicants for loans.
A Business Plan Model for Micro finance Loan

Other business support services in accounting, auditing, and taxation are also available.

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Ane

Deacon Anekperechi Nworgu, a seasoned economist who transitioned into a chartered accountant, auditor, tax practitioner, and business consultant, brings with him a wealth of industry expertise spanning over 37 years.