Financial Model, Financial Services, Loans & Lending Businesses, Peer to Peer Lending (P2P)

Excel, Financial Debt, Financial Planning, Financial Projections, Financing, IRR (Internal Rate of Return), Loans, Return on Investment (ROI)

Video Tutorial:

The primary inputs are designed to account for the dynamics that go on within the investing cycle of Peer to Peer (P2P) lending platforms. If you want to buy debt, it is a good idea to plan out all of the various factors that will affect your returns, as well as see what the returns look like.

This model assumes all interest payments received are compounded monthly.

You can project out as far as 55 years, and there is a monthly detail summary.

Cash drag is accounted for in assumptions and can be adjusted.

IRR included (cash invested, cash withdrawn, and interest value over life of the endeavor).

Have included a tool for you to figure out what your weighted average net annual rate of return (interest rate charged to borrowers) is.

Deposit and withdrawal schedules are also included.

Overall, the financial model offers a useful projection tool to use within the Peer to Peer (P2P) or Peer to Business (P2B) lending space. These platforms have popped up everywhere, and retail customers have great opportunities.