Lending Business Financial Projection 3 Statement Model

Banking, Financial Model, Financial Services, Loans & Lending Businesses, Microfinance

5-year Financial Projections, Break-Even, Budget, Dashboard, Debt Amortization, Debt Schedule, Excel, Financial Analysis, Financial Debt, Financial Model, Financial Modeling, Financial Planning, Financial Projections, Forecast, Forecasting, Loans, Revenue Projections, Startup Financial Models, Three Statement Model | Three Financial Statements

MODEL OVERVIEW

Highly versatile and user-friendly Excel model for the preparation of a 5-year rolling 3-statement (Income Statement, Balance Sheet, and Cash flow Statement) financial projection with a monthly timeline for a startup or existing business borrowing money from depositors and other sources, providing loans to various customer types and investing any surplus funds in financial investments.

The model allows the user to model up to 15 lending categories (which can be extended), each with its volumes, amounts, durations, origination fees, default rates, interest rates, and early repayment rates.

The model also includes modeling interest-bearing liabilities, financial investments, fixed assets, other borrowings, staff costs, marketing costs, other administrative costs, taxes, equity additions, and dividend distributions.

The model follows good practice financial modeling principles and includes instructions, line-item explanations, checks, and input validations.

KEY OUTPUTS

The key outputs include:

Projected full financial statements (Income Statement, Balance Sheet, and Cash flow Statement) presented on a monthly basis across 5 years and summarised on an annual basis.
Dashboard with:
- Summarised projected Income Statement and Balance Sheet;
- Compounded Annual Growth rate (CAGR) for each summarised income statement and Balance Sheet line item;
- List of key ratios, including average return on assets and equity, average debt to equity ratio, and equity to liability ratios.
- Bar charts summarising income statement and Balance Sheet projections;
- Chart/tables presenting income and volumes by lending categories.

KEY INPUTS

Inputs are split into Income Statement and Balance Sheet Inputs. Most inputs include user-friendly line item explanations and input validations to help users understand what the input is for and populate correctly.

Setup Inputs:
– Name of business;
– Currency;
– First projection year and month;
– Naming for lending categories, interest-bearing liabilities, financial investments, staff cost categories, marketing cost categories, admin expense categories, fixed asset categories, and borrowings;

Actuals Inputs:
– Opening balance sheet (for existing businesses);
– Income Statement actuals (for trend analysis);

Projection Inputs:

Lending Income
- Average loan amount
- Average loan duration
- Average default rate
- Early repayment rate
- Origination fees
- Interest rates
- Loan volumes
Interest-bearing liability expenses
- Additions/repayments
- Interest rates
Financial investments
- Target cash balances
- Investment return per annum
- Investment allocation percentages
Staff Costs include:
- Staff numbers;
- Average Annual cost per staff member;
- Average employer’s payroll taxes as % of salary;
- Average annual bonus;
- Average healthcare benefits per staff member;
Other cost inputs, including
- Marketing costs;
- Staff costs;
- Admin expenses.
Sales tax and corporate tax inputs, including rate and payment periods;
Dividend inputs, including the amount or percentage of retained earnings and frequency;
Fixed Assets, including additional amounts and useful life;
Borrowings, including addition/redemption amounts and interest rate;
Share Capital additions.

MODEL STRUCTURE

The model comprises of 9 tabs split into input (‘i_’), calculation (‘c_’), output (‘o_’) and system tabs. The tabs to be populated by the user are the input tabs (‘i_Setup,’ ‘i_Actuals’, and ‘i_Assumptions’). The calculation tab uses the user-defined inputs to calculate and produce the projection outputs presented in ‘o_Fin Stats’, ‘o_Dashboard’, and ‘o_DCF’.

System tabs include:

A ‘Front Sheet’ containing a disclaimer, instructions, and contents;
A Checks dashboard containing a summary of checks by tab.

KEY FEATURES

Other key features of this model include the following:

The model follows best-practice financial modeling guidelines and includes instructions, line-item explanations, checks, and input validations;
The model is not password protected and can be modified as required following download;
The model contains a dynamic timeline that allows for a mix of actual and forecast periods across a 5-year period allowing projections to be rolled forward from month to month;
Timeline is split on a monthly basis and summarised on an annual basis;
Costs are split into direct and non-direct for better driver-based forecasting;
The model allows for the following number of underlying categories for each line item (these can be easily expanded if required):
- Lending categories – 15 categories;
- Interest-bearing liability categories – 10 categories;
- Financial investments – 5 categories;
- Staff costs – 8 categories;
- Marketing costs – 5 categories;
- Admin expenses – 15 categories;
- Fixed Assets – 5 categories;
- Borrowings – 3 facilities;
Apart from projecting revenue and costs, the model includes the possibility model fixed assets, borrowings, dividends, corporate tax, and sales tax;
The model included an integrated discounted cash flow valuation using the projected cash flow outputs;
Business name, currency, and starting projection period are fully customizable;
Revenue, cost, fixed asset, and borrowing category descriptions are fully customizable;
The model includes instructions, checks, and input validations to help ensure input fields are populated accurately;
The model includes a checks dashboard summarising all the checks in the various tabs, making it easier to identify errors.

The model comes in two versions, a fully editable MS Excel and a Free PDF Demo Version.

File types: .xlsx (MS Excel) .pdf (Adobe Acrobat Reader)

MODIFICATIONS

If you require any bespoke modifications to the tool, we are more than happy to assist with this. Please send us a message or contact us.

ABOUT PROJECTIFY

We are financial modelling professionals with experience working in big 4 business modelling teams and strong experience supporting businesses with their financial modelling and decision support needs. Our aim is to provide robust and easy-to-use tools that follow good practice financial modelling guidelines and assist individuals and businesses with their financial projection and analysis requirements.

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