Money Speaks in Code
You want a loan. You have a factory plan. The bank manager is polite. He reads your plan. He does not ask about the color of your walls. He does not ask about the beautiful name you chose. He asks about three numbers. These three numbers are the secret code of finance.
They are ROI, IRR, and NPV. You cannot succeed without them. They are not optional. They are the core of your project's soul. They tell the bank if your idea is safe, fast, and profitable. Therefore, understanding these codes is essential for any serious entrepreneur in Bangladesh. If you want the bank to approve your money, you must speak their language.
ROI: The Basic Test
The easiest code to crack is ROI. This stands for Return on Investment. It answers a simple question. If I put in one Taka, how many Taka do I get back?
You invest 100 Taka in a machine. Over five years, that machine helps you earn 150 Taka. Your return is 50 Taka. The ROI is 50%. It is a simple ratio.
The bank uses ROI as a basic screening tool. If your ROI is low, they stop reading. Why should they invest in your project while they could earn more money elsewhere? Consequently, every project profile must show a strong, measurable ROI. It proves that the investment is worthwhile.
NPV: The Value of Time
The second code is NPV. This stands for Net Present Value. This is a bit trickier, because it involves time.
A Taka you receive today is worth more than a Taka you will receive five years from now. Why? Because you can use the Taka today. You can invest it. You can earn interest on it. Money loses value over time. We call this "inflation."
NPV calculates all your future profits. Then, it translates those future profits back to their value today. It discounts the money. Imagine waiting for a plate of hot rice. The rice is valuable. But if you wait too long, it gets cold. Cold rice is less valuable than hot rice.
The bank wants a positive NPV. A positive NPV means that after considering the loss of value over time, your project is still worth more than its cost today. If your NPV is negative, it means you are losing money slowly. You are waiting for cold rice. Therefore, a negative NPV is an immediate rejection.
IRR: The Project’s Secret Rate
The third code is the most important one. It is IRR, or Internal Rate of Return. This is the project's personal interest rate.
Every project generates a profit rate. The IRR is the rate at which the project breaks even. At the IRR percentage, your NPV is zero. Think of it as the project’s speed limit.
A bank has a "hurdle rate." This is the minimum percentage return they expect from any project. Your project's IRR must jump this hurdle. It must be significantly higher than the loan interest rate. If the bank charges you 10% interest, your project's IRR should be 18% or more. This provides a safety cushion.
If your IRR is 12% and the bank's interest is 10%, that is too close. The project is too risky. While a high IRR does not guarantee success, it strongly suggests a profitable path. It shows the bank that your project is strong enough to resist market pressures.
The Metrics Explained
These three metrics tell a complete story. They are essential. We summarize their roles below.
| Metric | What It Measures | Decision Rule | PPB Strategy |
| ROI | Simple, total profitability over time. | Must be high enough to justify the effort. | Use conservative cost estimates for a higher ratio. |
| NPV | The actual value of the project in today's Taka. | Must be positive (greater than zero). | Use a realistic "discount rate" to prove modern value. |
| IRR | The project's natural growth rate. | Must be much higher than the cost of borrowing. | Demonstrate strong cash flow in early years. |
You need all three numbers to be strong. If your ROI is high but your NPV is negative, something is wrong. You might be making small profits too far in the future.
The PPB Math Advantage
Most entrepreneurs can calculate ROI. They know the basic math. However, calculating NPV and IRR accurately is a complex task. It requires financial modeling. It demands deep understanding of time value of money.
We build a financial model for your project. This is not just a few columns in a spreadsheet. It is a detailed year-by-year, month-by-month projection. We track cash inflow and outflow for the next ten years.
We use accepted accounting principles. We factor in depreciation. We factor in tax holidays. We factor in every possible variable. Therefore, our calculated NPV and IRR are trusted by the financial institutions in Bangladesh and abroad.
Why Guessing is Dangerous
You cannot afford to guess these numbers. If your calculations are sloppy, the bank will spot the error. If you use a wrong discount rate for NPV, the result will be wrong.
A wrong calculation can lead to a rejected application. It can waste months of preparation time. Rather than risking this, you should rely on experts. We ensure the numbers are solid.
Consider a simple scenario. Two applications for the same type of project. Both require 5 crore Taka.
Project A: Has an IRR of 14%.
Project B: Has an IRR of 20%.
The bank will always fund Project B first. Why? Because it offers a much bigger margin of safety. It offers a higher potential reward. Your goal is to be Project B. Our goal is to make sure your project profile proves you are Project B.
The Investment in Trust
Hiring Project Profile Bangladesh (PPB) is not an expense. It is an investment in certainty. We ensure that your project's financial picture is clear and compelling. We give the loan officer every reason to say "Yes." We provide project profile and feasibility study report in Bangladesh and abroad.
We know the banks' formulas. We know their internal "hurdle rates." We build your financial model to exceed their expectations, because a strong financial core leads to a strong business.
It Is Time to Speak the Code
Stop talking about your dream. Start talking about your IRR. Show the bank the numbers they want to see. Let us prepare the document that translates your hard work into bankable capital.
Reach out to us today. Let us calculate your future success.
Contact Us for Accurate Financial Modeling:
Website:
www.projectprofilebd.com Mobile: +8801716752370
Turn complexity into clarity with our expert reporting.
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