Update to Money Lending Business Forecasting Template

 This is not as major as the previous update I did to this financial model where a rolling credit facility was added along with revenue recycling percentages, but it is major in terms of making the template more usable and easier to follow as well as more durable.

Get the template here: https://www.smarthelping.com/2021/05/lending-bank-financial-model-10-year.html

Financial Model Updates:

  • Contributions now based on any negative monthly cash flow periods (including period 0)
  • Distributions are any positive monthly cash flow periods
  • Instead of defining a hard-coded input for initial investment, the user defines the contribution rate
  • Upon exit, if there is a multiple defined for sale of loans receivable, any gains/losses are accounted for properly and the balance sheet and cash flow statement will show this
  • Deprecated all the logic around dividend distribution / distribution of excess cash flow. This was redundant and more confusing than helpful.
  • Better functionality on long-term debt terms / flow to all statements
  • Update to capex flows to the balance sheet
In general, the template is just more user-friendly now and can handle more edge cases than before if needed. It is also much easier to follow what is actually happening with cash flow and when.