Business Loan Operation Analysis v.1.

03 (GP)
Break Down of Revenue Model Dollars Percentage
Interest Revenue (See below assumption) 279,035.18 $ 100%
Variable Expense:
Brokerage Fee* (25,000) $ -9%
Account Management Fee+ (25,000) $ -9%
Unrecoverable default** (37,500) $ -13%
Contribution Margin 191,535 $ 69%
Fixed Expense:
Employees (159,000) $ -57%
Initial Software Cost - $ 0%
Legal-Fee - $ 0%
Net operating income 32,535 $ 12%
Profit by investing in banks at 2% return 50,000 $
*Assumes 12 compounding interest rate, for average of 12 months loans, amortized.
Profit from the
Operation
Bank Investment
Return
$- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000
1
2
Profit Level
The Investor's Options:
Avg. Annual
Interest Rate
Avg. Loan
Amount
Number of
Clients
Total
Investment (DO
NOT CHANGE) Brokerage Fee*
20% $ 25,000 100 $ 2,500,000 1.0%
Unrecoverable
Default**
Account
Management
Fee
Initial Software
Cost
Legal-Fee
(yearly)
1.5% 1.0% $ - $ -
Employee Cost Base pay Benefits + Taxes Total Cost
Employee #1 40,000 $ 13,000 $ 53,000 $
Employee #2 40,000 $ 13,000 $ 53,000 $
Employee #3 40,000 $ 13,000 $ 53,000 $
Employee #4 - $
Emp #5 (PT) - $
Emp #6 (PT) - $
Total 159,000 $
KEY STATISTICS
1 Total Interest Revenue
279,035.18 $
2 Total Employeement Compensation
159,000.00 $
3 Interest Revenue - Employees Payment
120,035.18 $ << Employee Payment too high
1 Interest revenue needed in order to break-even
231,636.79 $
2 Net Operating Income
32,535.18 $
1 Competitor (Bank) Return
50,000.00 $
2 Net Operating Income - Competitor Return
($17,464.82)
<< Needs to be a positive
number to beat the market
Statistical Analysis (Don't Change the Number Here)
-10%
-
-65%
0% 0%
WHAT MAKES UP THE TOTAL EXPENSES?
(SHOWN IN NEGATIVES)
Brokerage Fee*
Unrecoverable default**
Initial Software Cost
Statistical Analysis (Don't Change the Number Here)
10%
-10%
-15%
WHAT MAKES UP THE TOTAL EXPENSES?
(SHOWN IN NEGATIVES)
Account Management Fee+
Employees
Legal-Fee
Enter values
Loan amount 2,500,000.00 $
Annual interest rate 20.000%
Loan period in years 1
Start date of loan 1/1/2014
Monthly payment 231,586.26 $
Number of payments 12
Total interest profit 279,035.18 $
Total cost of loan 2,779,035.18 $
No.
Payment
Date
Beginning
Balance Payment Principal Interest
Ending
Balance
1 2/1/2014 2,500,000.00 $ 231,586.26 $ 189,919.60 $ 41,666.67 $ 2,310,080.40 $
2 3/1/2014 2,310,080.40 $ 231,586.26 $ 193,084.92 $ 38,501.34 $ 2,116,995.48 $
3 4/1/2014 2,116,995.48 $ 231,586.26 $ 196,303.01 $ 35,283.26 $ 1,920,692.47 $
4 5/1/2014 1,920,692.47 $ 231,586.26 $ 199,574.72 $ 32,011.54 $ 1,721,117.75 $
5 6/1/2014 1,721,117.75 $ 231,586.26 $ 202,900.97 $ 28,685.30 $ 1,518,216.78 $
6 7/1/2014 1,518,216.78 $ 231,586.26 $ 206,282.65 $ 25,303.61 $ 1,311,934.13 $
7 8/1/2014 1,311,934.13 $ 231,586.26 $ 209,720.70 $ 21,865.57 $ 1,102,213.43 $
8 9/1/2014 1,102,213.43 $ 231,586.26 $ 213,216.04 $ 18,370.22 $ 888,997.39 $
9 10/1/2014 888,997.39 $ 231,586.26 $ 216,769.64 $ 14,816.62 $ 672,227.75 $
10 11/1/2014 672,227.75 $ 231,586.26 $ 220,382.47 $ 11,203.80 $ 451,845.28 $
11 12/1/2014 451,845.28 $ 231,586.26 $ 224,055.51 $ 7,530.75 $ 227,789.77 $
12 1/1/2015 227,789.77 $ 231,586.26 $ 227,789.77 $ 3,796.50 $ 0.00 $
Interest Revenue from Loan
No.
Payment
Date
Beginning
Balance Payment Principal Interest
Ending
Balance
No.
Payment
Date
Beginning
Balance Payment Principal Interest
Ending
Balance
No.
Payment
Date
Beginning
Balance Payment Principal Interest
Ending
Balance
No.
Payment
Date
Beginning
Balance Payment Principal Interest
Ending
Balance
No.
Payment
Date
Beginning
Balance Payment Principal Interest
Ending
Balance
No.
Payment
Date
Beginning
Balance Payment Principal Interest
Ending
Balance
No.
Payment
Date
Beginning
Balance Payment Principal Interest
Ending
Balance