A qualifying borrower with a weak project can still be declined. The business must show a credible route from loan disbursement to revenue and repayment.
Use conservative sales assumptions
Estimate customers, price, gross margin and collection period. Show evidence such as purchase intent, existing experience, local demand or comparable businesses. Avoid a project report where revenue triples immediately without explanation.
Calculate working-capital cycle
If customers pay after 60 days but suppliers demand cash in 15, the business needs financing for the gap. Include inventory holding and receivable days. An underfunded working-capital plan can cause default even when the product is profitable.
List every licence and approval
Map business activity to local, sector and tax registrations. A bank may hold disbursement until key approvals are available.
Show borrower contribution honestly
Do not borrow the required margin informally and hide it. The bank should understand the real funding structure and existing obligations.
Plan the first twelve months
Create monthly sales, expenses, debt service and cash balance. Include a slower-sales scenario. If cash turns negative immediately, reduce project size or increase genuine equity contribution.
Decision rule
Use the scheme as access to credit, but make the proposal bankable on normal business fundamentals. Genuine ownership, realistic cash flow and complete compliance are what turn eligibility into a sustainable loan.