How Should a Startup Approach a Bank for Funding?

Here is a step by step process for the startup.

The first step is to prepare a pitch (usually called a Detailed Project Report). This should all details about the startup – the business model, the promoters’ background, revenue model, sales figures, traction so far, growth rate, market size and other estimates. Return on Investment is the key factor considered here.

Then you should identify bank having schemes for startup. Know which banks lend for which purpose. For instance, some banks fund to build products, some based on receivables, some for growth, some for R&D etc. Analyse which bank will be suitable for your needs.

Finally, you can fill in the forms and present your pitch.