Why Financial Projections Fail: A Banker’s Guide to Stress Testing Vinu: Manu, most borrowers submit detailed projections. Yet many of them fail in reality. Why? Manu: Because projections are usually optimistic, not operational. They reflect what promoters hope will happen, not what the business can...
Key Financial Numbers Every Entrepreneur Must Track Monthly Vinu: Manu, I don’t have time to study full financial statements every month. What are the exact numbers I should track? Manu: Good thinking, Vinu. As an entrepreneur, you only need 8 critical numbers every month. Vinu: What is the first on...
Common Financial Mistakes Growing Businesses Must Avoid Vinu: Manu, as businesses grow, what are the most common financial mistakes you see? Manu: The first mistake is growing sales without planning working capital. For example, revenue jumps from ₹8 crore to ₹12 crore, but receivables also increase...
Post-Sanction Monitoring: The Monthly Checklist Every Banker Must Follow Vinu: Manu, once a loan is sanctioned, what should a banker actually track every month? Manu: Three things—account conduct, cash flow behaviour, and compliance with sanction terms. Vinu: Let’s start with account conduct. What d...
Term Loan Appraisal Mistakes: Why Good Projects Turn into Bad Loans Vinu: Manu, while appraising term loan projects, where do bankers usually go wrong? Manu: The first mistake is trusting the project cost and estimates blindly, without validating quotations, capacity and market reality. Vinu: Can yo...