Drafting loan investment studies

Loan investment studies

The investment study is a set of information that enables understanding the profitability and investment dynamics and also making rational evaluation of the project or investment. The investment study is a document that shows the financial and economic viability of the investment and the implementation path of the project or investment. The study defines the project and sets up the targets, identifies problems and opportunities, analyze the existing situation and the environment, with analyzing several possible scenarios finds positive outcomes of the project. In the case of more complex investments, it is possible to draft a pre-investment study, in which various solutions are considered (different financial, economic, technical and other solutions) in order to choose the most optimal result.

Generally, content of the investment study is usually a template issued by the Croatian Bank for Reconstruction and Development (HBOR), which meets the requirements of financial and other institutions in the Republic of Croatia that offer credit funds:

1. INVESTOR – ENTERPRENOUR INFORMATION
2. INVESTORS BUSINESS BACKGROUND
3. EXISTING INVESTORS ‘ASSETS
4. BUSINESS FINANCIAL MANAGEMENT ANALYSIS
5. EVALUATION INVESTORS DEVELOPMENT POSSIBILITIES
6. MARKET ANALYSIS
   Supply market
   Demand market
   Summary of Market Analysis and Revenue Assessment
7. PERSONNEL  DYNAMICS AND STRUCTURE
   Required personnel Analysis
   Annual gross wages calculation
8. TECHNICAL ELEMENTS OF INVESTMENT
   Description of the technical-technological process
   Consumption of raw materials, materials and energy sources
   Technical investment structure
   Characteristics of building (business premises)
9. LOCATION
10. ENVIRONMENTAL PROTECTION
11. INVESTMENT REALIZATIONS DYNAMICS
12. ECONOMIC AND FINANCIAL ANALYSIS
    Investment in fixed assets
    Investment in working capital
    Structure of investments in fixed and working assets
    Funding sources and credit conditions
    Credit Accounting
    Amortization
    Cost calculation and price calculation
    Projection of the Profit and Loss
    Financial flow
    Economic flow
    Balance projection
13. ECONOMIC-MARKET ASSESSMENT
    Static evaluation of the efficiency of an investment project
    Dynamic assessment of the project
    Return on investment calculation method
    Net present value method
    Relative present value method
    Internal profitability rate method
14. SENSITIVITY ANALYSIS
15. FINAL OVERVIEW OF THE PROJECT