SmartHelping / Lending Businesses / Excel
Lending Business Financial Model
Plan a lending business over 10 years with scalable loan counts, three repayment structures, and connected financial statements. Model capital requirements, a rolling credit facility, earnings reinvestment, and cash available for distributions.
Immediate download after purchase. By purchasing, you agree to the Terms of Service.
See the model in action
Walk through the lending model and its updates.
Included with the $75 purchase
Choose the framework that fits your lending plan.
The tranche-based version is included at no additional charge and retains the financial statement framework.
Scalable loan model
Project loan originations and repayments by monthly cohort across three loan types. The standard version brings in equity as needed to support the forecast.
Upfront-equity variant
Use the included alternative that invests the minimum required equity upfront, based on the lowest cash position over the forecast.
Tranche-based version
Configure up to 100 clients with their own terms, loan amounts, and default rates. Up to five draws per client produce a maximum of 500 loans.
Tranche equity and other investments
Enter investor equity raised manually and optionally allocate some investment capital to other facilities earning a defined rate of return.
Three loan structures
Configure repayment terms and origination activity.
Configure weighted average loan amounts and origination fees for each loan type. Fees are defined as a percentage of originations.
Interest-only, then principal and interest
Set an initial interest-only period in months, its weighted average interest rate, and the rate and term for the subsequent principal-and-interest repayment period.
Interest-only loans
Set the weighted average interest rate, term, loan amount, loan origination fees, and origination activity.
Principal-and-interest loans
Set the weighted average interest rate, repayment term, loan amount, origination fees, and origination activity.
Loan counts and annual assumptions
Set each loan type’s start month, starting loan count, and loans added per month. Other loan assumptions can vary across the 10 forecast years; start month and starting loan count are initial settings.
Capital requirements and cash flow
Connect loan growth to the funding it requires.
Optional rolling credit facility
Use a yes/no selector to enable the facility and define the percentage of loan disbursements it funds. Set the facility’s annual interest rate in the monthly detail and change it by period when needed.
Equity funding
Set the start year and debt, investor, and owner funding assumptions. Use the standard version for equity contributed as needed or the included variant for the minimum required equity invested upfront. Turn the credit facility off for an all-equity lending plan.
Recycling revenue
Define the percentage of origination fee and interest revenue used to originate new loans, with the remainder available for working capital and operating or interest expenses.
Cash available for distributions
The distribution logic considers operating cash flow and net loan funding needs. Cash is not distributed simply because the business reports net income.
Defaults, staffing, and operating costs
Plan the operating side of a growing loan book.
Standard-model default assumption
Apply a single default rate across the loans in the scalable model. Defaults reduce the principal collected.
Client-specific tranche assumptions
Use the tranche-based version when you need separate client terms, amounts, and default rates, with projected cash flows tracked by tranche.
Startup and operating expenses
Set the start month for each cost line and define its monthly amount in each forecast year.
Sales and customer service staffing
Configure staffing types and ratios for each loan type, linking required headcount to loan counts and origination activity.
Financial statements, valuation, and reporting
See the loan portfolio and business results together.
Connected three-statement model
Review monthly and annual Income Statements, Balance Sheets, and Cash Flow Statements alongside the monthly and annual detail summaries.
Loan cash flows over 10 years
Follow originations, outstanding balances, principal collections, and interest through a continuous monthly timeline, with results for each loan type.
Equity timing and IRR
Review capital requirements and the timing of investor and owner cash flows. Equity contribution timing flows through the IRR calculations.
Exit valuation
Model exit value as a multiple of total outstanding loans receivable at the selected exit month.
Financial and loan activity visuals
Review visualizations of overall financial performance, cash flow, and the activity and cash flows of each loan type.
Cohort-based calculations
The scalable framework calculates payments across origination cohorts, reducing the need to build a separate amortization schedule for every individual loan.
Optional manual inputs
Adjust monthly activity when your plan needs it.
Also included in these bundles
Explore more lending and financial planning templates.
Accounting Templates
Explore templates for accounting workflows, statements, cash planning, and forecasting.
View the Accounting bundleLending Business Models
Explore models for lending, loan businesses, and related financing structures.
View the Lending bundleIndustry-Specific Financial Models
Explore financial models built around the operating drivers of different businesses.
View the Industry-Specific bundleSupporting templates and articles
Explore statements, ownership, and cohort logic.
Financial Statement Generator
Explore a separate template for generating financial statements.
View template detailsConsiderations When Giving Up Equity
Read about ownership considerations when raising startup capital.
Read the articleEnterprise SaaS Financial Model
Explore another application of cohort-based financial modeling.
View model detailsBest Practices in Cohort Analysis
Read about cohort analysis and how grouping activity over time supports modeling.
Read the articleQuestions before you start
A few useful details.
Can loan terms be shorter than one year?
Yes. For inputs expressed in years, use months divided by 12. A six-month term is 0.5 years and a nine-month term is 0.75 years. The initial interest-only period for the hybrid loan type is entered in months.
Can I fund the loans entirely with equity?
Yes. Select No for the rolling credit facility option to model an all-equity lending plan.
Can I enter loan originations manually each month?
Yes. Enter the monthly loan additions on the Monthly Detail tab in the documented rows for each loan type instead of relying on the loan scaling assumptions.
Is the tranche-based version included?
Yes. The $75 purchase includes the tranche-based version for up to 100 clients and five draws per client, producing up to 500 loans.
Do both frameworks use the same default-rate input?
The scalable model uses one default rate across its loans. The tranche-based framework allows client-specific default assumptions.
Does the 500-loan limit apply to the scalable version?
No. That limit describes the included tranche-based framework. The original scalable model projects loan counts by monthly origination cohort across three loan types.
Plan the growth of your lending business
Connect loan growth, funding, and cash flow.
Lending Business Excel Model — $75, including the tranche-based version.
