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The Financial Modeller
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Banking and lending

Buy now pay later provider financial model, built free.

A three-statement Excel model for a buy-now-pay-later provider, built from your own figures and checked to balance.

  • Free account
  • No card
  • Usually ready within the hour

We use generative AI in parts of our process, so mistakes can occur. Every model should be checked by a person before it is relied on. Read more

The business

Pays merchants up front less a merchant fee and collects short interest-free instalments from consumers, earning the merchant discount, late and account fees on a fast-turning receivables book funded by warehouses.

See the sampleHow the model works

In short

  • 01

    Three linked statements

    Income statement, balance sheet and cash flow, linked in every period.

  • 02

    Valued two ways

    Discounted cash flow and trading multiples, side by side.

  • 03

    Monthly to annual

    Monthly, quarterly, half-yearly or annual periods, for up to 30 years.

  • 04

    Checked every period

    A Checks sheet shows the balance sheet balances and the cash reconciles.

The sample

The sample, as Excel draws it.

Built by the same system and checks as yours: its structure and its inputs, ready for your own figures.

Annual · 10 years · Low detail
Buy now pay later provider sample model.xlsx
The How It Works sheet of the sample buy now pay later provider model

The sample describes no real business. Yours is calibrated to your own figures, so its results are your business’s.

How it works

How the model works for a buy now pay later provider.

  1. How it earns revenue3 formulas
    Loan yield and interest income · All loan portfolios
    Interest incomeAverage gross loansPortfolio yield (base rate + margin)share of the year
    Lending fees and charges · All loan portfolios
    Lending fee incomeEstablishment fees chargedAccount feesLine fees on undrawn limits
    Payment volumes and take rate · Across the business
    Payments revenueMerchant service feesIncome on settlement float
  2. What drives its costs3 formulas
    Origination and acquisition costs · All loan portfolios
    Broker-originated loans at the end of the periodBroker-originated loans at the start of the periodBroker-originated new lendingLess broker-originated loans repaid or written off
    Origination and acquisition costs · All loan portfolios
    Origination and acquisition costs incurredUpfront broker commissionOther origination costsTrail commission
    Expected credit loss and write-offs · All loan portfolios
    Closing allowanceClosing gross loansfrom loan origination and runoffECL allowance coverage (% of gross loans)
  3. How it is funded3 formulas
    Loan origination and runoff · All loan portfolios
    Closing gross loansOpening gross loansNew lending (settlements)Scheduled amortisationPrepayments and other runoff (including loans written off)
    Loan origination and runoff · All loan portfolios
    Net loans advanced (new lending less cash repayments)Closing gross loansOpening gross loansWrite-offs (net of recoveries)from expected credit loss and write-offs
    Equity raising
    Equity raisedDistributions reinvested under the DRPOther equity raised (net of costs)Equity from an offer, milestone funding, conversions and creditor shares
  4. How profit becomes cash3 formulas
    Working capital
    Trade receivablesRevenuefrom statementsDebtor daysDays in period
    Working capital
    InventoryDirect costs (positive)from statementsInventory daysDays in period
    Working capital
    Trade payablesCash operating costs (positive)from statementsCreditor daysDays in period
What it covers

23 parts, each one tested.

Every part is a tested building block with its own checks: yours is put together from the ones your business needs.

  • Operating expensesHeadcount build by function
  • Corporate costsFixed cost base indexed to CPI
  • Working capitalFull working capital
  • Income taxCorporate rate with tax losses
  • Equity raisingDistribution reinvestment plan
  • Discounted cash flow valuationDCF on free cash flow to the firm
  • Multiples valuationEV / EBITDA multiple
  • Payment volumes and take rateTPV × take ratePayments revenue from total payment volume or transactions, and the interchange and scheme costs against it.
  • Customers, accounts and acquisition costMarketing budget ÷ CACActive customers or funded accounts of a digital financial service (neobank, BNPL, broker, crypto or wealth app) and the marketing and onboarding cost of winning them.
  • Warehouse and securitisation fundingWarehouse advance ratesNon-bank funding of the loan book through warehouse facilities, term securitisation and whole-loan sales, and its interest cost.
  • Lender and bank key metricsNIM bridge by driverNet interest margin, spread, cost-to-income ratio, loss rate and returns for banks and lenders, and their drivers.
  • Key-metric summaryLast-twelve-month and run-rate metrics
  • Covenant tests and headroomLVR, gearing and ICR for property
  • Case selectionStackable stress toggles
  • Burn and runwayRunway to the forecast cash-out date
  • R&D and capitalised developmentGross R&D × capitalisation rate
  • Interest-rate forecastMarket forward curve
  • CPI forecastCPI glide path
  • Loan origination and runoffOriginations less runoffGross loans rolled forward from new lending, scheduled repayments, prepayments and write-offs.
  • Loan yield and interest incomeBase rate plus marginInterest income earned on each portfolio from its yield, repricing and fees.
  • Lending fees and chargesFee schedule by event and accountFee income on a loan portfolio — establishment and application fees, monthly account fees, line and commitment fees on undrawn limits, late and default fees, discount and service fees on invoice finance, and early repayment charges.
  • Origination and acquisition costsUpfront and trail commission ratesCosts of winning each loan — broker upfront and trail commissions, dealer incentives, credit bureau, verification, valuation and settlement costs — expensed or deferred into the loan's effective yield.
  • Expected credit loss and write-offsAllowance coverage and write-off rateCredit loss expense, the expected credit loss allowance held against loans, and write-offs.
Key numbers

The numbers it tracks.

  1. 01GMV
  2. 02merchant fee margin
  3. 03receivables
  4. 04net transaction loss rate
  5. 05transaction margin
  6. 06active customers
  7. 07funding cost
  8. 08EBITDA
Used for

What it is used for.

Also used for
  • Scenarios and sensitivities
Related models

More in banking and lending.

Every financial services model

Looking for a buy now pay later provider financial model template? Ours arrives built for your business, with your figures in it.

See a finished model, sheet by sheet

The sample is built on illustrative figures and describes no real business. Models are calculations prepared from the information you provide. They are not financial advice and must be independently verified. See our terms.