What is a financial projection?

A projection looks forward. It says: if sales, prices and costs behave like this, here is the profit and here is the cash. It is a plan with numbers, not a promise.

How it is different from accounts

Accounts tell you what already happened. Projections tell you what may happen if the plan holds. Banks often ask for both — past books and a forward view.

Who asks for projections?

• Banks and NBFCs, for a term loan or working capital
• A new partner who wants to see if the idea holds
• The owner, before taking a shop, machine or product line

What a simple projection usually shows

• Expected sales, month by month or year by year
• Cost of goods and running expenses
• Profit
• Cash in and cash out — when money actually moves
• Loan instalments, if you plan to borrow

Assumptions matter

Every projection rests on a few plain assumptions: price, volume, margin, staff cost, rent, and how fast customers pay. We write those assumptions down so you can change them later.

What we do

• Read your current books and the plan you have in mind
• Build sales, cost and cash workings that a bank can follow
• Show you whether the idea holds before you borrow or spend

Papers usually needed

• Recent sales and purchase summaries
• Bank statements
• Current loan details, if any
• A short note of the new plan — product, price, staff, rent