Banks Look for a Reason to Say No
You must understand one simple truth about banks. They are not waiting to give you money. They are waiting to see if they should. Every application is guilty until proven innocent. The loan officer is a detective. He is looking for flaws. He is searching for gaps in your story.
Therefore, your project profile is not a hope letter. It is a legal defense document. You must eliminate every reason for rejection. This requires cold logic, not warm feelings. At Project Profile Bangladesh (PPB), we see the same critical errors again and again. These mistakes kill projects before they even start. They are the silent killers of your loan application.
Mistake 1: The Lie of Old Data
The worst mistake is using old or fake market data. This is self-deception, because it makes your project look better than it is.
Imagine you are starting a shrimp farm in Khulna. You use the market price of feed from 2021. But today, the price has surged by 30%. Your profitability calculations are now useless. Your expenses are higher. Your projected profit is wrong.
The bank knows this. They have their own teams. They verify the price of steel, cement, land, and labor. If the data is wrong, the bank thinks you are either lazy or dishonest. Consequently, they reject the application immediately. You must use current, validated data. You must prove the numbers are real.
Mistake 2: Forgetting the Working Capital
You remembered the big money. You calculated the cost of land. You tallied the price of the big machinery. However, you forgot the small, daily money.
This "small money" is called Working Capital. It pays the workers' salaries next month. It buys the raw materials needed for production day one. It covers the electricity bill while you wait for your first sales.
A business is like a human body. Fixed capital is the skeleton. Working capital is the blood. Without blood, the body dies, even if the skeleton is beautiful. Many project profiles show a huge building and expensive machines. Yet, they have no cash left for three months of operation. Therefore, the business starves itself. The bank knows this starvation is guaranteed failure.
Mistake 3: The Unbelievable Sales Forecast
Every entrepreneur is an optimist. This is good for morale. But it is bad for the project profile. You cannot just write, "We will sell 1,000 units in the first month."
The sales forecast must be believable. It must be conservative. You need to prove where those 1,000 units are going. Which shops will stock them? Who are your competitors? What is their current market share?
We use a ramp-up model. We assume sales are slow at first. Then they build slowly. We factor in marketing costs. We factor in inevitable delays. Rather than promising a miracle, we promise steady, sustainable growth. A realistic forecast shows the bank you have a grasp on reality. It shows maturity.
Mist4: Ignoring the Management Team
A bank lends money to two things. They lend to the idea. They also lend to the person running the idea. The profile must showcase the management team.
Who are you? What is your experience? If you are a fresh graduate starting a large factory, the bank will worry. You need experienced managers around you. You need a CFO who knows the books. You need a production head who knows the machines.
The management profile is the "soft side" of the report. While the numbers are strong, the team is the engine that drives them. A profile with poor management details is like a perfect car without a driver. The bank is lending money for the journey. They must trust the person with the steering wheel.
Mistake 5: The Optimist's Trap (No Plan B)
Life is full of surprises. The ship breaks down. The price of fuel suddenly doubles. A good profile must not assume perfect sailing weather. It must prepare for the storm.
This is the failure to include a proper Sensitivity Analysis. This analysis tests the project's ability to survive stress.
We ask the tough questions. If sales drop by 15%, can you still pay the interest? If the construction takes six months longer, how much more cash do you need? This is the core of risk assessment.
The bank loves this section. It shows that you have thought like a creditor. It shows you are not just a dreamer. You are a planner.
| Risk Scenario | Expected Outcome (No Plan B) | Protected Outcome (With PPB Analysis) |
| Loan Term Delay (3 Months) | Debt service failure; penalties applied. | Contingency fund activated; extended timeline factored in. |
| Increased Interest Rate (2%) | Profit margin collapses. | Project structure adjusted; still meets minimum IRR. |
| Machine Breakdown (4 Weeks) | Production stops; fixed costs eat cash. | Insurance coverage and repair fund demonstrated. |
Therefore, a profile without a plan B is just wishful thinking. A bank will not fund a wish.
Mistake 6: The Format Failure
Every major bank in Bangladesh has specific project profile requirements. The format is often set by Bangladesh Bank guidelines. If your report does not follow this format, it will likely be ignored.
This is a procedural error. It is a sign of carelessness. The bank does not have time to re-arrange your tables and chapters. They need the IRR calculation on page 5. They need the management summary on page 2.
Using a generic template from the internet is dangerous. Because these templates often lack the specific financial schedules required by local banks. Our reports are custom-made to fit the strict guidelines of Bangladeshi banking institutions. We know the rules of the game.
We Block the Rejection
You should not try to fix these mistakes on your own. You have a business to run. We have the expertise to spot these flaws before the bank does.
At Project Profile Bangladesh (PPB), our job is to find the flaws in your plan. We test your assumptions. We verify your data. We calculate your working capital requirements down to the last Taka.
We write the profile so strongly that the loan officer has no reason to say "No." We turn the detective into an admirer. We turn the risk into a calculation. We turn the dream into a bankable reality. We provide project profile and feasibility study report in Bangladesh and abroad.
Choose Professionalism
Do not risk months of waiting time and potential rejection. The cost of a professional profile is small compared to the value of your approved loan. It is the cheapest insurance policy you can buy for your project.
Call us today. Let us build the document that secures your future.
We Are Waiting for Your Project:
Website:
www.projectprofilebd.com Mobile: +8801716752370
Let us take the risk out of your big idea.
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