What the study covers
- Lender-ready format
- Debt-service schedule
- Debt service coverage ratio
- Risk & collateral analysis
- Projections over the loan term
- Revisions on lender request
What makes a bank-ready feasibility study different?
A bank does not only ask whether the project is profitable. It also asks whether the project will generate enough cash to pay every instalment on time — even if sales come in below forecast. A bank-financing study therefore focuses on liquidity and repayment capacity as much as on profitability, and presents the information in the order and level of detail credit officers are used to.
What does the study include?
- Executive summary: the project idea, the amount and purpose of the financing, and the sources of repayment.
- Project and sponsor profile: experience, legal form and the owner’s equity contribution to the total cost.
- Market and technical study: demand and competition, site, equipment and well-documented capital costs.
- Projected financial statements: income, cash flow and balance sheet for at least the full loan term.
- Debt-service schedule: instalments, interest or profit charges and the proposed grace period.
- Repayment-capacity indicators: such as the debt service coverage ratio (DSCR), debt-to-equity and liquidity ratios.
- Risk and collateral analysis: the main risks, how they will be managed and the proposed security.
Who needs this study?
Founders who need a loan to set up a new project, established companies seeking finance to expand or buy equipment, and applicants to SME financing programmes or development-finance institutions in Egypt, Saudi Arabia and the Gulf, which usually require a detailed feasibility study as part of the application file.
Does the study guarantee bank approval?
No study can guarantee approval: the final decision rests with the lender, based on its credit policy, its assessment of the borrower and the collateral offered. What a clear study built on realistic assumptions does is shorten the review, reduce requests for clarification and present the project’s strengths in terms a credit officer understands.
How SCOOP works with you
We review the requirements of the lender you are targeting, prepare the study accordingly, walk you through the key indicators so you can answer the bank’s questions with confidence, and make any revisions the lender requests.
FAQ about the Feasibility Study for Bank Financing
How is a bank-financing study different from a regular feasibility study?
Both contain market, technical and financial analysis, but the bank-financing study adds a debt-service schedule, repayment-capacity indicators and a collateral analysis, and follows the format required by the target lender.
Do requirements differ from one bank to another?
Yes. Details such as the projection period, required templates and equity contribution vary, so we review the requirements of the institution you are applying to before preparing the study.
Does the study guarantee that I will get the loan?
No. The financing decision belongs to the bank, based on its credit policy and the collateral offered, but a well-built study makes the application clearer and faster to review.
Can an older study be updated for a bank application?
Yes. After assessing whether it is still usable, we can update its data and prices and complete any sections the lender requires.