Startup Financial Model Template for Buy Now, Pay Later Service Firm

A “buy now, pay later” (BNPL) business lets customers purchase goods or services immediately but pay for them in installments over time—often with little or no interest if payments are made on schedule. This Excel modeling template focuses on the specific assumption related to such a business for accurate bottom-up projections.

Added a New Framework to Direct Lending Business Financial Model

I started on the general lending business model years ago and it has undergone a lot of feature additions and simplifications for usability over time based on customer feedback. It has probably been one of the most successful templates of mine that has had the most use.

Financial Model for Sale-leaseback Analysis - Tenant and Landlord Views

This template was a tough build. It took mental stamina to complete in the way that maximizes usefulness. We are talking about getting down into the details of tax, NOL carryforwards, depreciation recapture effects, and a whole bunch of other assumptions that make the model flexible for sale-leaseback analysis from any point of view.

Template Update - Depreciation Recapture Logic Fix

It has been awhile since I had a template update, but when I catch a logical error, I try to fix it as soon as possible and do a video about exactly what happened so that is what you are getting here.

Original Problem: In the scenario where the asset was being sold at less than the original cost basis, the model was taking the difference in the original cost basis and the sales proceeds and counting that as a loss that offsets depreciation recapture taxable amount. In reality, the depreciation recapture is simply any amount you sell an asset for that is greater than the adjusted cost basis but less than the original cost basis.

Fix: Now, in that same scenario, the correct calculation is happening which is taking the difference between the sales proceeds and the adjusted cost basis (book value or value after accounting for accumulated depreciation) and using that as the only thing to figure out the depreciation recapture amount.

The original model worked perfectly for calculating recapture if you sold the asset for more than the original cost basis or less than the adjusted cost basis. It was that scenario where it is in between where the problem happened.

If you sell for more than the original basis, you just have to pay taxes on the amount of depreciation that was taken. Anything over the original basis still gets taxed at the capital gains tax rate and selling for less than the adjusted cost basis gives you a capital loss.

The main reason I came across this error is because I was looking at what happens if you have a net operating loss carryforward (NOL carry) and if it could be used to offset depreciation recapture due. The answer to that was yes, but now I have also improved the original depreciation recapture template.

Note, there are many caveats to taxes so please consult a tax attorney or CPA for your specific situation.

I've built many templates over the years, check out more accounting tools here and real estate models here.

Example Business Plan for Scaling ATM Machines

 Below is an example business plan for starting an ATM business. It outlines key components such as the business model, unit economics, conservative deployment strategy, operational costs, cash flow projections, and exit opportunities. While these details are illustrative, they provide a robust framework that can be adapted to specific regions and market conditions.

---

If you want to test out your own numbers and scenarios, check out this fully editable ATM financial model template.

1. Executive Summary

Business Concept:
XYZ ATM Services (placeholder name) aims to install and operate Automated Teller Machines (ATMs) in strategic retail, hospitality, and convenience locations. The company will generate revenue primarily through surcharge fees on cash withdrawals, as well as potential interchange fees paid by card networks. By targeting high-traffic locations with favorable footfall, XYZ ATM Services plans to build a profitable and sustainable business with minimal overhead compared to traditional brick-and-mortar financial services.

Objectives:

1. Deploy 3–5 ATMs in the first year in high-potential locations.
2. Establish relationships with local small businesses, shopping centers, and gas stations.
3. Achieve steady monthly transaction volumes that ensure a positive monthly cash flow.
4. Expand to 20–30 machines by the end of Year 3 through organic growth and strategic reinvestment.
5. Position the business for possible acquisition or continuation through passive income.

---

2. Market Analysis

• Industry Overview: The ATM industry in many regions remains profitable due to the persistent demand for cash transactions. Despite the rise in digital payments, niche markets and locations (bars, nightclubs, convenience stores in underserved areas) still rely heavily on cash.
• Target Market: Focus on:
  • High foot-traffic convenience stores and gas stations.
  • Bars and nightclubs (where cash tipping and purchases are common).
  • Small retail businesses lacking on-site banking.
  • Tourist-heavy areas with visitors frequently needing local currency.
• Competitive Landscape: Major players include large national ATM operators and banks. However, niche operators and independent ATM deployers (IADs) can succeed by selecting prime local spots, offering attractive revenue share to merchants, and providing reliable service.

---

3. Value Proposition

• For Customers: Convenient and easy access to cash, especially in “cash-preferred” locations.
• For Location Owners: Earn extra revenue through commissions (a portion of ATM surcharge) and increased customer traffic.
• Differentiators:
  • Local focus and hands-on relationship management with merchants.
  • Customer-friendly surcharge fees in line with market rates.
  • Reliable uptime through consistent maintenance and swift cash replenishment.

---

4. Business Model and Unit Economics

Revenue Streams

1. Surcharge Fees: A fee charged directly to the cardholder for withdrawing cash. Common surcharges range from $2.00 to $3.50 per transaction in many U.S. markets (this can vary by region).
2. Interchange Fees: Card-issuing banks pay a fee (set by the card networks) to the ATM owner per transaction. This typically ranges from $0.15 to $0.40 per withdrawal.
3. Merchant Revenue Share (Expense): The location owner typically receives a portion of the surcharge (often $0.50–$1.00 per transaction or a negotiated percentage).

Cost Drivers

1. ATM Purchase or Lease:
   • Purchase price: $2,000–$4,000 per basic, retail-style ATM; can be higher ($5,000–$8,000) for advanced functionalities or brand-new machines.
   • Lease options: $70–$150/month, depending on the machine and terms.
2. Installation & Setup:
   • ~$300–$500 per ATM for delivery, installation, signage, and potential electrical or data line configuration.
3. Monthly Telecom/Internet Fee:
   • $10–$30 per machine for wireless or broadband connectivity.
4. Cash Loading Services:
   • If self-managed, cost is primarily the opportunity cost of owning or borrowing the cash float.
   • If contracted, typically $0.20–$0.50 per transaction plus potential monthly service fees.
5. Maintenance & Service:
   • $50–$100/month per ATM for routine servicing, parts, or extended warranties.
6. Insurance:
   • Coverage for theft, vandalism, and cash-in-transit. Can be $40–$80 per month depending on coverage amounts.

Example Unit Economics (Monthly per ATM)

• Average Transaction Volume: 200 withdrawals per month
• Surcharge Fee: $2.50 per withdrawal

• Revenue:

  • Surcharge Revenue: 200 × $2.50 = $500
  • Interchange Revenue: 200 × $0.25 = $50
  • Total Revenue = $550

• Expenses:

  • Merchant Commission: $1.00 per transaction → 200 × $1.00 = $200
  • Telecom/Internet: $20
  • Maintenance & Parts: $50
  • Misc. (insurance, bank fees, etc.): $30
  • Total Expenses = $300

• Gross Profit (Monthly per ATM) = $550 – $300 = $250

This is a simplified snapshot. Actual results will vary by location, surcharge rate, merchant split, and transaction volume.

---

5. Conservative Growth Strategy

1. Pilot Phase (Months 1–6):

   • Deploy 3–5 ATMs in known high-traffic, low-competition locations.
   • This phase tests operational processes (cash replenishment, maintenance, merchant relationships).
   • Target a stable monthly transaction count of ~150–200 per ATM.

2. Validation & Refinement (Months 6–12):

   • Analyze performance of existing machines and refine location criteria.
   • Negotiate additional placements with the help of positive references from pilot merchants.
   • Aim to add 2–3 new ATMs in carefully selected sites by the end of Year 1.

3. Scaling (Years 2–3):

   • Focus on saturating local markets with proven location types (convenience stores, busy bars).
   • Reinvest profits into purchasing additional machines (preferably 5–10 new ATMs annually).
   • Maintain conservative growth—only expand when the pilot sites reach stable profitability and there is sufficient cash flow to support new deployments.

4. Optimization (Years 3–5):

   • Monitor underperforming machines (below 100 transactions/month) and relocate or renegotiate surcharge splits.
   • Optimize cash management by rotating ATMs with higher transaction volumes or through outsourcing services if it reduces overall cost.
   • By Year 3, aim for 20–30 machines, each generating consistent profit.

---

6. Cost Structure and Cash Flow Planning

Initial Startup Costs (for first 3–5 ATMs):

• ATM Machines (3 @ $2,500 each): $7,500
• Installation & Setup (3 @ $400 each): $1,200
• Branding & Marketing Collateral: $500
• Legal & Administrative Fees (LLC formation, permits, etc.): $1,000
• Insurance (annually): $800
• Working Capital (Cash Float): $10,000–$15,000 (varies depending on daily/weekly load requirements)

Approximate Total Initial Outlay: $21,000–$26,000

Ongoing Monthly Operational Costs (per machine):

• Merchant Commission: Varies by transaction volume
• Maintenance & Telecom: $70–$150 combined
• Insurance: $40–$80 total monthly (spread across machines)
• Cash Replenishment: Either self or outsourced cost

Cash Flow Planning Considerations:

• Timing of Surcharge & Interchange Payments: Typically, you receive the surcharge revenue directly or via ACH within 24–48 hours. Interchange fees can be received monthly or weekly.
• Cash-on-Hand: Ensure a sufficient reserve for refilling ATMs. High-traffic machines may require replenishment multiple times per week.
• Debt Repayment: If machines or startup were financed, factor in monthly loan/lease payments.
• Profit Reinvestment: Profits from the first year can fuel expansion into additional machines for accelerated but controlled growth.

---

7. Risk and Mitigation Strategies

1. Location Risk: The site might underperform if foot traffic is overestimated.

   • Mitigation: Thoroughly research foot traffic, confirm other successful ATMs in the area, negotiate initial trial periods with merchants.

2. Security Risk: Theft or vandalism can disrupt operations.

   • Mitigation: Insurance coverage, strategic placement of machines, security cameras, reinforced ATM units.

3. Regulatory/Compliance Risk: Bank Secrecy Act (BSA) and other regulatory frameworks.

   • Mitigation: Stay updated with industry regulations, maintain clear financial records, partner with a reputable ATM processor.

4. Cash Flow Risk: Insufficient cash to keep machines filled.

   • Mitigation: Accurate demand forecasting, maintain strong credit lines or relationships with banks for short-term liquidity.

5. Technological Risk: Upgrades required (EMV, NFC, etc.).

   • Mitigation: Purchase or lease newer machines capable of upgrades, budget for periodic software/hardware updates.

---

8. Marketing & Sales Strategy

• Merchant Outreach: Directly contact local businesses with a simple value proposition: earn additional income while providing a valuable service to customers.
• Referral Networks: Partner with local business associations and Chambers of Commerce.
• Competitive Surcharge Strategy: Set surcharges based on local market norms. Offer a favorable split to merchants as an incentive.
• Customer-Centric Focus: Position the ATM(s) in easily visible and safe locations. Good signage and lighting boost usage.

---

9. Management & Operations

• Owner/Operator: Oversees vendor relationships (ATM suppliers, telecom providers), manages finances, signs up locations, and handles day-to-day operations (or oversees employees).
• Technician/Service Personnel (in-house or outsourced): Handles installation, maintenance, repairs, and cash replenishment.
• Accountant/Bookkeeper: Monitors monthly transactions, reconciles surcharges, pays out merchant commissions, and files taxes.

---

10. Financial Projections (Illustrative)

Below is a simplified projection for the first three years, assuming conservative assumptions and a gradual scale-up.

Year 1

• Machines Deployed: 5
• Average Transactions/Month/Machine: 150
• Monthly Revenue per Machine: $2.50 surcharge × 150 + interchange = ~$375–$400
• Monthly Expenses per Machine: $200–$250 (commissions + maintenance + other fees)
• Monthly Profit per Machine: $125–$200
• Annual Net Profit:
  • (Monthly Profit per Machine) × 12 × 5 machines = $7,500–$12,000

Year 2

• Additional Machines: +5 (Total 10)
• Improved Transaction Volume: 175 transactions/month/machine
• Monthly Profit per Machine: $150–$250
• Annual Net Profit:
  • (Monthly Profit per Machine) × 12 × 10 machines = $18,000–$30,000

Year 3

• Additional Machines: +10 (Total 20)
• Transaction Volume: ~200 transactions/month/machine
• Monthly Profit per Machine: $200–$300
• Annual Net Profit:
  • (Monthly Profit per Machine) × 12 × 20 machines = $48,000–$72,000

These figures are indicative and heavily dependent on actual transaction volumes, surcharge rates, merchant splits, and operating costs.

---

11. Planned Exit Opportunities

1. Private Sale / Acquisition:

   • Larger ATM operators or private equity firms may seek to acquire smaller networks, paying a multiple of EBITDA or a per-machine valuation if the machines have good transaction volumes and stable revenue.

2. Partnership / Merger:

   • Merge with another local independent operator to increase bargaining power with processors, reduce overhead costs, and combine networks for higher valuation.

3. Passive Income / Operator Model:

   • Continue operating the machines as a stable cash-flow business without a formal exit. Often, owners keep a lean staff or outsource day-to-day tasks and collect ongoing revenue.

4. Franchise or Licensing Model:

   • Once proven, replicate the business model in adjacent markets, recruiting local operators who pay a fee or revenue share for access to branding, network, and supply chain.

---

Conclusion

Starting an ATM business can be highly profitable with the right location strategy, competitive surcharge rates, strong merchant partnerships, and efficient operations. By beginning with a small network of machines and incrementally scaling up, entrepreneurs can manage risk and maintain steady cash flow. Ultimately, the business can be positioned for a lucrative exit or retained as a reliable, semi-passive income stream once operational processes are refined and key relationships are established.

---

Disclaimer: The numbers and strategies provided here are for illustrative purposes and should be customized based on local regulations, market dynamics, and actual costs. It is advisable to consult with a financial advisor, accountant, or industry professional before making any business decisions.

Check out more bottom-up financial model templates and spreadsheet tools for 100s of unique use cases.

You can also hire me to build custom startup financial models here.

If you want to download all the templates on this site, check out the Super Smart Bundle.

Article found in Startups.

Overriding Inventory Forecasting Template with Unit Sales Input

The Inventory Forecasting Template showcased in the below video is a comprehensive tool designed to help businesses project their future sales, manage stock levels, and forecast cash flow. I had a custom question about overriding expected future unit sales by SKU and the response is in the video.

Strategic Business Plan: Subscription Meal Delivery Service

Business Overview

An example company offers a subscription-based meal delivery service, providing healthy, freshly-prepared meals directly to consumers on a weekly basis. The primary focus is on busy professionals, families, and health-conscious individuals seeking convenience, nutritious options, and personalized meal solutions tailored to various dietary needs and preferences.

Loan Securitization Financial Model Template

This is a financial analysis tool that lets the user enter various inputs and assumptions in regards to loan securitization. In general, this means a bank offloads many loans in a security offering that is run by a special purpose vehicle (separate from the bank). Investors are offered notes with various terms (coupon rates / rules) that are used to pay for the initial loan collateral. The performance of the loans (collateral) drives note repayment.

Business Plan Example for a Made-to-Order Manufacturing Business (custom machinery and specialty equipment)

 Below is a sample business plan for a hypothetical made-to-order manufacturing company. While the details are illustrative, they provide a solid framework you can tailor to your specific venture. Each section includes typical considerations and assumptions that apply in a made-to-order context.

Business Plan Example for Starting an Auto Repair Shop Chain

 Below is an illustrative business plan for a multi-location auto repair business. The numbers are rough estimates for demonstration purposes; actual figures will vary based on geography, market conditions, and specific strategy. Nonetheless, this plan provides a framework for how one might structure, operate, and grow an auto repair business to 20 locations over 10 years, with an eye toward potential exit strategies.

Commercial Real Estate Financial Modeling Expert (me)

The first thing I ever modeled was a real estate underwriting tool back at my first job in 2012. The owner owned auto repair shops and also the real estate related to 13 locations. That was my first exposure to cap rates, DSCR, and analyzing real estate deals in general. I've come a long way from there and worked on 100s of custom builds from self-storage to mixed-use, industrial, retail / strip malls, and everything else you can think of.

When is the Right Time to Pivot as an Entrepreneur?

Deciding when to move on from a business idea is one of the toughest calls an entrepreneur can make. However, letting go of an unworkable idea early can save resources—time, money, and emotional energy—that could be better spent on a new opportunity. Below are key considerations regarding time, effort, MVP work, and signals that it’s time to walk away:

Business Plan Example for a Startup Professional Services Firm

Below is a comprehensive business plan framework for a professional services firm that generates revenue by taking a cut (margin) of its consultants’ billable hours. This write-up covers core business model elements, unit economics, scaling to profitability, initial costs, exit strategies, major risks (and mitigations), and how to balance risk versus reward for sustainable growth.

Explaining Each Type of SBA Loan (startup financing help)

Below is an overview of the primary SBA loan programs, how different businesses or startups might use them, where overlaps might occur, and the potential risks to keep in mind.

Financial Model Template for Business + Real Estate Joint Venture Acquisition Deals

This model is great for acquisition deals that involve real estate and an underlying operating business (think assisted living facilities). I've built some brand new frameworks for debt and refinance as well as connected the most flexible preferred return waterfall. You'll be able to quickly analyze deals with high level assumptions that are streamlined into a single tab.

Cap Table with Convertible Note Excel Template

I have not done a ton of startup-specific financial modeling tools related to raising money (specifically the effect on your cap table). I believe this template will help founders understand their cap table and what happens when they decide to raise money through a convertible note and/or a new equity round.

Calculating WACC for Real Estate Acquisitions

Calculating a Weighted Average Cost of Capital (WACC) for a real estate acquisition that includes debt, preferred equity, and common equity follows the same general principles as a corporate WACC calculation—just with an additional layer to account for the preferred equity’s cost and weighting. Below is a step-by-step outline of how to approach it.

Understanding Variable Costs and Financial Modeling

Variable costs are expenses that change in direct proportion to a company’s level of production or sales volume. Unlike fixed costs (such as rent or a monthly lease payment), variable costs rise as production or sales increase and fall as production or sales decrease. Because of this direct correlation, variable costs are typically expressed on a per-unit or percentage-of-sales basis in financial models.

Business Plan Example for a Startup EV Charging Station Operator

Below is a high-level example business plan for an electric vehicle (EV) charging station company looking to scale profitably. The plan includes key sections such as market analysis, business model, marketing strategy, operations plan, financials with assumptions, and exit strategies. While this outline doesn’t include exhaustive detail, it provides a useful framework and practical considerations.

Business Plan Example for a General SaaS Startup

Below is a simplified example of a SaaS-based business plan for a fictional company we’ll call TaskFlow, which offers cloud-based project management and collaboration software to small and medium-sized businesses. The plan includes typical assumptions about user growth, revenue streams, churn, operating expenses, and funding. These figures are illustrative and meant to provide a framework for how a pro forma might look in the early years of the company’s life cycle.

Business Plan Example for Starting a Cleaning Services Company

Below is an example business plan outline for a cleaning services company that seeks to acquire recurring revenue contracts and scale to profitability. The plan highlights key assumptions, estimated financials, and a possible exit strategy. All figures are illustrative and can be adjusted based on your specific market and growth goals.

Business Plan Example - Startup Plumbing Business

Below is an example of a concise, structured business plan for a startup plumbing company. The plan includes a realistic set of assumptions and outlines a path to scale profitably. Adjust any details to fit your specific market conditions and personal expertise.

Financial Model Template for Scaling Many Fitness Studios / Franchises

I am excited about pushing this new template out. My initial design was for the purpose of running analysis on fitness studio scaling, but it turned into a financial model that can be used for many types of retail sector franchises. With this tool, anyone can create highly useful projections for scaling 1 to 'n' studios over 15 years and see exactly what the capital requirements and returns are. One of the most advanced parts of the model is capex timing and leverage. Let's dive in below!

Business Plan Example: Vending Machine Startup

Below is a sample, high-level business plan for a vending machine business that outlines how you might launch with just a few machines and then gradually scale up. All financial figures are illustrative and should be adjusted based on your actual local conditions, product mix, and location specifics.

Excel Financial Modeling with Power Pivot

Power Pivot is a powerful data modeling and analytics feature that extends Excel’s native capabilities. It enables you to work with very large datasets (potentially millions of rows), combine data from multiple sources, and create robust data models and calculations—all within the familiar Excel interface.

I've personally built 100s of unique bottom-up financial modelling templates over the years, check them out!

Below is an overview of what Power Pivot can do and how you can utilize it effectively in your financial models and analyses: