NBFC Business Plan

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NBFC Business Plan

Like any other business, Non-Banking Financial Companies (NBFC’s) also require to frame a business plan for laying foundation of the company. The business plan gives a source of direction to achieve short- and long-term objectives. NBFC business planning is an enormous concept that comprises of business structure, promoter background, an executive summary, market size, growth aspect, products and services etc.

Importance Of Drafting An NBFC Business Plan:

Drafting an effective Business Model for NBFC is crucial for the business purpose and serves the following objectives:

  • It presents information to stakeholders such as prospective investors, financial institutions, funding institutions for generating loan.
  • Motivates the company to achieve its goal.
  • Keeps the employees of the organisation updated with plans and objectives, and the roadmap to make these.
  • A good business plan would also have a framework to operate during challenging situations.

Because of the above requirements, it is crucial to have a well-drafted NBFC business model.

Documents /points To Be Covered In NBFC Business Plan:

Features Of NBFC Business Plan

Well drafted Business Plan helps you to be a successful NBFC. Business Plan acts as a blueprint to be successful NBFC. Following are the advantages of NBFC business Plan:

  • Business Strategy: NBFC Business Plan helps you in the understanding the business strategy. It also serve as a resource for measuring the goals of the NBFC Business with the model.
  • Potential Sales, growth, profits: Before commissioning product design and implementation, it is important to get a reasonable estimate of the numbers first. As a quantitative reflection of the strategy, a well-prepared business plan will provide insights on the cost structure, sales required to break-even or even post a profit, and what the return on investment will be. The business plan can have significant downstream benefits during the implementation journey, and provide warning signals in case of significant deviation from the initial plan. More importantly, the business plan provides impetus to ancillary initiatives necessary to ensure a successful implementation (e.g., hiring plan, digital budget, marketing spend, branch rationalization).
  • Prioritizes Work: The NBFC business plan will assist you in prioritizing work according to the importance. This will help your NBFC to be productive and achieve its targets within the time limit.
  • Setting Business- On drafting the NBFC business plan, it will provide a straightforward method of starting the NBFC business. You would not forget essential procedures which need to be followed by your NBFC by having an NBFC business plan. This model will also allow you to secure investment from investors. Apart from this, the business plan also acts as a marketing tool in helping you set up an NBFC business.
  • Financial management– Financial institutions such as banks deal with money and deposits daily. Similarly, an NBFC deals with providing loans and advances, acquisition of stock and dealing with the business of chit funds. Therefore financial management is crucial for the business of the NBFC. By using the NBFC business plan, there would not be any difficulties in managing the flow of cash and other receivables in your business.

The Validity Of An NBFC Business Model

A well-drafted NBFC business plan would have the above points. However, a business plan is drafted having the current market factors and would be valid for a specified period. A business plan cannot be valid indefinitely. Some factors which affect the business plan are technology changes, digitisation, market forces and changes in the preference of consumers. Therefore, an NBFC business plan drafted must be put to immediate use.

Frequently Asked Questions

Business Plan is an exclusive document through which we can understand the objectives, vision, mission, strategy, strengths, weaknesses, future goals, growth aspects of a particular organization.

While applying for NBFC License from RBI, a company has to submit business plan giving details of it’s a.) thrust of business b.) market segment and c.) projected balance sheets, cash flow, asset/ income pattern statement for getting registered as NBFC.

It helps in understanding the objectives of the Company, deciding the strategy of the business, tracking the progress of the company, cash and fund flow management etc.

Business plan is drafted for a specified and definite period. It cannot be valid indefinitely.

Some factors which affect the business plan are technology changes, digitisation, market forces and changes in the preference of consumers


NBFC Business Plan is the document which summarizes the thrust of business, market segment, future plans, growth prospective, goals and objectives of Company which is important for any business and requirement for getting NBFC License from RBI. Well-framed Business plan requires skill, knowledge, experience and drafting skills. Compliance Calendar LLP, a team of well experienced professionals can help you in drafting proper Business Plan of your Company. If you are looking for Non-Banking Financial Company (NBFC) Business Plan, you are welcome to connect with us at info@ccoffice.in or call us at +91-9988424211 to book your one-time free consultation and we will be more than happy to help you out.