Update: Upgraded logic around loan expiration count per month and automated the loan length inputs so they can be any number of months.
This model goes out 10 years and provides in-depth inputs for a correct and comprehensive projection of a startup Lending platform model where the platform facilitates lending/borrowing between peers. This type of business model has become popular in the cashless lending scene.
You will be able to adjust various risk grades, loan amounts per grade, avg. interest rates per grade, and % of loan counts falling into each risk grade per a given term (up to 4 term lengths).
There is logic to show an exit valuation at any month within the 10-year forecast as well as IRR, cash requirements, and net cash returns / ROI figures. The model goes as granular as possible but then comes out to a high-level view for the primary revenue and expense forecasts.
Sensitivity analysis is possible and you can change up to 3 revenue-driving variables to run a low/base/high scenario. The magnitude of how much the base assumption is affected can also be input.
Charts and visuals have also been included to show the revenue share the platform receives from gross interest, closing costs, and/or coverage of a certain % of defaults. If anything does not apply, you can simply enter a 0 in the field.
Another nice feature is the break-even month and break-even year for accumulated cash. This includes the payback of debt upon exit.
See the overview here:
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The model needs to include balance sheet and P2PL ratio, default rate for each loan grade, recovery rate for each loan grade, penalty fee for late payments for each loan grade
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