Cost of Project & Means of Finance Explained
Plain-language guide to cost of project, means of finance, and promoter margin in business project reports—without confusing jargon.
Two tables confuse beginners: “Cost of Project” and “Means of Finance.” Together they answer: how much is needed, and where the money comes from. Totals must match.
Cost of project (building blocks)
- Land and site development (if applicable)
- Building / civil work
- Plant and machinery
- Other fixed assets (furniture, computers, vehicles)
- Preliminary and pre-operative expenses
- Working capital margin
- Contingency (small, justified)
Means of finance (sources)
- Promoter contribution / equity
- Term loan (if you are modeling one for planning)
- Subsidy or grant (only if formally applicable—state source)
- Unsecured loans from friends/family (disclose clearly)
Present both tables in annexures. If you change machinery cost, update both sides. Credlook helps generate consistent tables from your inputs.
FAQ
What is included in cost of project?
Usually land/building (if owned or to be acquired), plant & machinery, furniture, vehicles, preliminary expenses, and working capital margin.
What is promoter contribution?
The portion of project cost funded by the promoter—cash, land, or existing assets valued as per accepted norms.
Does Credlook arrange loans?
No. Credlook prepares documentation software output from your data. We are not a bank or NBFC.
Credlook.in provides project report and CMA documentation software from customer-provided details. We are not a bank, NBFC, lender, or government scheme authority.