Adding Rolling Credit Facility to Lending Business Financial Model

 This model update came after the third customer requested the same upgrade to the lending business Excel spreadsheet. The base logic is still the same but the change involves adding a rolling credit facility and updates to cash requirement timing / IRR calculation. This is one of those sheets where I've heard clients tell me that they have spent TONS of money trying to build something similar and in one case a guy said they wanted to charge $40k/mo for the financial modeling of a lending business.


  • Note, this has gotten a final update (not in the video) that includes an input percentage for the amount of interest / fee revenue that you want to recycle into new loans. The remainder would be available for general use as working capital (to pay interest / fees / other opex / etc..)
  • User can now enter a 'yes/no' selection to choose if they want to fund some of the lending activities with a credit facility. This is a type of debt where the borrower pays a monthly interest rate on borrowed funds and typically doesn't pay back the principal but rather re-invests the funds into originating more loans at a higher interest rate.
  • You can define a percentage of the lending activities that will use this facility (0%-100%)
  • I also updated the way the contributions / distributions flow as well as the equity line items in the balance sheet and cash flow statement. Now, equity requirements come out in the month they are required instead of all up front based on the minimum cash position. The reason for this update is that scaling a lending business often means you are likely to be cash flow negative for years until stabilization. It could be 4/5 years until you get to your target loans receivable amount. So, for better IRR analysis, this specific model made more sense to structure like that.
  • These updates are live right now.