Skip to content
The Financial Modeller
Build free
Banking and lending

Consumer lender financial model, built free.

A three-statement Excel model for a consumer lender and card issuer, 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

Non-bank lender of personal loans, credit cards, car loans or small-amount credit to consumers, earning high yields and fees against high credit losses, funded by warehouses, ABS and corporate debt.

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
Consumer lender sample model.xlsx
The How It Works sheet of the sample consumer lender 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 consumer lender.

  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
    Fee and commission income · Across the business
    Fee and commission incomeNet card fee incomeOther fee and commission income
  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
    Credit loss expense (net write-offs + change in allowance)Write-offs (net of recoveries)from net of recoveriesClosing allowanceOpening allowance
  3. What it invests in3 formulas
    Corporate fixed assets
    Capital expenditureRevenuefrom statementsCapex as % of revenueAdditional planned capex
    Corporate fixed assets
    DepreciationDepreciation of the opening asset baseDepreciation of new capex
    Corporate fixed assets
    Closing net book valueOpening net book valueCapital expenditureDepreciation
  4. How it is funded3 formulas
    Loan origination and runoff · All loan portfolios
    Closing gross loans (limits × utilisation)Total limitsUtilisation (drawn balances ÷ limits)
    Loan origination and runoff · All loan portfolios
    Net loans advanced (new lending less cash repayments)Closing gross loans (limits × utilisation)Opening gross loansWrite-offs (net of recoveries)from expected credit loss and write-offs
    Loan origination and runoff · All loan portfolios
    Opening gross loans (accounts × limit × utilisation)Open accounts at the start dateAverage limit per account at the start dateUtilisation (drawn balances ÷ limits)
  5. 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

24 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.

  • CPI forecastConsensus curve with long-run anchor
  • Operating expensesHeadcount build by function
  • Corporate costsFixed cost base indexed to CPI
  • Working capitalFull working capital
  • Income taxCorporate rate with tax losses
  • Corporate fixed assetsStraight-line over remaining life
  • DebtAmortising term loan
  • Equity raisingDistribution reinvestment plan
  • Dividends and distributionsPayout of net profit
  • Discounted cash flow valuationDCF on free cash flow to the firm
  • Multiples valuationEV / EBITDA multiple
  • Fee and commission incomeCard spend × interchangeNon-interest income from account, lending, card, trade and wealth fees.
  • 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
  • Interest-rate forecastMarket forward curve
  • Loan origination and runoffLimits × utilisationGross 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-offsArrears roll ratesCredit loss expense, the expected credit loss allowance held against loans, and write-offs.
Key numbers

The numbers it tracks.

  1. 01receivables
  2. 02originations
  3. 03yield
  4. 04net charge-offs
  5. 05risk-adjusted margin
  6. 06cost of funds
  7. 07cost-to-income ratio
  8. 08return on equity
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 consumer lender 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.