Skip to content
The Financial Modeller
Build free
Banking and lending

Pawnbroker and small-amount lender financial model, built free.

A three-statement Excel model for a pawnbroker, small-amount and microfinance lender, 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

Makes short, small loans against pledged goods (pawn) or on an unsecured, group or payday basis through store networks and online, earning high fee yields, and sells forfeited collateral as retail merchandise.

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
Pawnbroker and small-amount lender sample model.xlsx
The How It Works sheet of the sample pawnbroker and small-amount 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 pawnbroker and small-amount 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
    Forfeited collateral and merchandise sales · Across the business
    Closing forfeited inventoryLoans forfeited into inventory (at loan value)share of the yearDays forfeited stock is held before sale
  2. What drives its costs3 formulas
    Expected credit loss and write-offs · All loan portfolios
    Closing allowanceClosing gross loansfrom loan origination and runoffECL allowance coverage (% of gross loans)
    Expected credit loss and write-offs · All loan portfolios
    Credit loss expense (net write-offs + change in allowance)Write-offs (net of recoveries)Closing allowanceOpening allowance
    Expected credit loss and write-offs · All loan portfolios
    Write-offs (net of recoveries)Gross write-offsRecoveries
  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 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
    Debt
    RepaymentsScheduled repaymentsPrepayments from an equity raise and the cash sweep
  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

21 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
  • Forfeited collateral and merchandise salesForfeiture rate and merchandise marginPledged goods forfeited when pawn loans are not redeemed, the inventory they create, and their sale as retail merchandise or scrap.
  • LeasesLease register
  • 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
  • Case selectionStackable stress toggles
  • Interest-rate forecastMarket forward curve
  • 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.
  • 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. 01pawn loan book
  2. 02redemption rate
  3. 03fee yield
  4. 04merchandise margin
  5. 05loss rate
  6. 06stores
  7. 07EBITDA per store
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 pawnbroker and small-amount 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.