General Rental Business Financial Model: Equipment, Furniture, Devices

If your business rents capital assets out to other businesses or people, this financial planner will help. I have done a bit of financial modeling in the equipment rental space. This MS Excel spreadsheet offers a general 5-year startup rental business template that can be used for any tangible good category. The model is simple (plan out purchase batches and how much your daily rental rate/utilization will be). The rental business is always booming!

$75.00 USD

The template will be immediately available to download after purchase. This is included in the industry-specific financial model bundle and the industrial sector niche bundle.

tool rental business model

Recent Upgrades: Added fully integrated 3-statement model (monthly and annual Income Statement, Balance Sheet, and Cash Flow Statement) as well as a cap table and better global sanity checks.

This spreadsheet will work great for:

The model has been fully structured from initial start year and timing assumptions to all the revenue and expense logic and potential exit value. A couple key highlights:

  • Update: Logic added for frequency of rentals and return of units and corresponding cost. This is to account for costs directly related to delivering the units / getting them returned and any other costs related to those events.
  • Dynamic logic for up to 25 renting categories and up to 7 purchase tranches for each category.
  • Dynamic depreciation expense based on when units are purchased and their useful life.
  • EBITDA, EBT, and Net Income (after taxes).
  • Cool visualizations.
  • 5-year monthly and annual pro forma detail
  • Executive Summary for high level financial highlights and visuals.
  • DCF Analysis and IRR / ROI / Equity Multiple for project, investor pool, owner equity pool.
  • Full operating expense cost schedule, startup costs, and capex.
  • Define the frequency with which things are rented out and a cost for that (also for when it is returned). This can be zeroed out if not needed.
The biggest feature of this Excel template is the revenue configuration. It is based on a matrix style infrastructure where the user inputs up to 25 category names. For each category, there are slots for up to 7 different purchase tranches. The purchase month, price per unit, total units purchased can be defined for each tranche for each category. This gives maximum granularity and strategic financial planning in regards to what is bought, the cost, and when and how much revenue that generates over time.

Overlaid on top of that logic is the annual utilization rate per each category per year and the average daily rental fees charged per category per unit over 5 years. There is also an input for average active days per month.

Finally, there is a percentage applied to each category that represents the average monthly degradation of purchased units. What that means is that over time there can be wear and tear on the units being purchased and this degradation percentage defines how much of the initial purchase count is available over the life of that purchase cohort. If you don't think it is relevant, you can just put 0% or some very small percentage.

The exit value is based on a multiple of trailing 12-month revenue per the exit month. If no exit is desired in the model, that multiple can just by 0.

Visualizations Include:
  • Revenue and EBITDA vs. Total Purchased Units
  • Average Utilization of Rentable Uni
  • Rentable Units by Category
  • Actual Units Rented by Category
  • Revenue by Category
  • Revenue by Category
  • Expenses by Category
  • Expenses by Category (% of Total)
  • Average Rental Revenue per Month (available to rent vs. rented)
  • Monthly Cash Flow vs. Accumulated Cash - Project Level
  • Monthly Cash Flow
  • Net Book Value of Total Purchased Units over Time
  • EBITDA per Month