This type of lending business was spawned from the original lending business financial model I did awhile back. The difference in this kind of business model is that a fixed percentage or 'fee' is charged based on the total amount borrowed. There is no monthly interest or compounding interest. Also, this kind of endeavor is usually funded with leverage that is lower cost than the flat fee being collected from customers and usually the difference is substantial as that is where the margin is made.
Recent Upgrades: Added financial statements (Income Statement, Balance Sheet, and Cash Flow Statement) as well as a cap table.
I put up to four loan configuration options in and even though each loan has the same mechanics in the way it works (they are all flat-fee based), you can adjust them based on the various general terms you will be offering.
Each loan configuration allows the user to adjust the following over 10 years:
- Loans settled per month
- Average loan amount
- Flat fee charged (percentage)
- Loan Term (in months)
- 10-year time frame
- Toggle (yes/no) if the loans are all repaid at the end of the term along with the fee or if the total fee and principal are evenly repaid back over the term.
- Toggle (yes/no) if the capital requirements to originate the loans is sourced from senior debt / other leverage that has a regular APR that is charged on the balance each month or not. If not, then the cash required will flow to the minimum equity requirement of the project.
- At exit month, define the multiple at which the loans receivables can be sold at and any remaining leverage balance is assumed to be repaid in full.
- Monthly and annual Profit / Loss detail where all granularities are visible.
- DCF Analysis (project level and investor / operator level.
- Visualizations for consolidated and for metrics regarding each of the four loan configurations.
- Annual Executive Summary to easily see high level financial line items and cash flow
- Loan Tape Analyzer
- General Lending Business (traditional P+i and/or interest only loans)
- LaaS (Lending-as-a-Service Platform (facilitating interest-only loans for a fee)
- P2P Lending Participant