
The Credit Facility model breaks down the financing structure where consumers borrow against a pre-approved credit line through a credit facility. This includes a third-party lender that provides the credit line through the credit facility. This calculates the credit schedule, lender cash flows, and the revenue share to the credit facility.
At the top is the assumptions section that drives the model. Information can be entered in this section, including Credit Line assumptions, Consumer assumptions, Lender assumptions, and Revenue Share. Payback period can be adjusted using the drop-down box associated with each month for variability.
This flows into the next section where the credit schedule is calculated. This amortizes the total credit balance and breaks out the interest and principal repaid to the lender. This provides the Lender cash flows for each payment period that is used to calculate the IRR of the credit facility. From the lender cash flows, the revenue share is calculated. At the bottom of the model, there is the IRR for the lender and the average monthly revenue for the credit facility.
All cells in blue font are input cells where custom information can be entered. All cells in black font are formulas set to streamline the model.
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