PURPOSE OF MODEL
 
A leasing company specializes in providing assets or property to individuals or businesses for a specified period, typically in exchange for regular payments. These assets can include vehicles, equipment, real estate, or even technology. Rather than purchasing an item outright, leasing allows the lessee (the person or entity using the asset) to use it for an agreed-upon duration by making regular payments to the lessor (the leasing company). At the end of the lease term, the lessee can often choose to return the asset, renew the lease, or sometimes even purchase the asset at an agreed-upon price.
 
Our highly versatile and user-friendly Excel model allows for the preparation a of 5-year rolling 3 statement (Income Statement, Balance Sheet and Cash flow Statement) financial projection with a monthly timeline for a startup or existing business leasing company borrowing funds to purchase assets to lease, leasing out these assets and investing any surplus funds in financial investments.
 
The model applies IFRS 16 methodology to project both finance leases (10 categories) and operating leases (10 categories) each with their own lease volumes, costs, fair values, direct costs, monthly lease payments, durations, credit losses, residual values and useful life.
The model also includes interest-bearing liabilities, financial investments, fixed assets, other borrowings, staff costs, marketing costs, other administrative costs, taxes, equity additions and dividend distributions.
 
 
KEY OUTPUTS
 
Projected full financial statements (Income Statement, Balance Sheet and Cash flow Statement) presented on a monthly basis across 5 years and summarised on an annual basis.
Dashboard with:
Summarised projected Income Statement and Balance Sheet;
Compounded Annual Growth rate (CAGR) for each summarised income statement and Balance Sheet line item;
List of key ratios including average return on assets and equity, average debt to equity ratio and equity to liability ratios.
Bar charts summarising income statement and Balance Sheet projections;
Chart/tables presenting income, expenses, balances and volumes by leasing category.
 
 
KEY INPUTS
 
Setup Inputs:
Name of business;
Currency;
First projection year and month;
Naming for finance and operating lease categories, interestbearing liabilities, financial investments, staff cost categories, marketing cost categories, admin expense categories, fixed asset categories and borrowings;
 
Actuals Inputs:
Opening balance sheet (for existing businesses);
Income Statement actuals (for trend analysis);
 
Projection Inputs:
Finance Leases
Cost of leased asset at commencement
Fair value of leased asset
Initial direct costs of lease
Residual value of leased asset
Monthly lease payments
Duration of lease
Expected credit losses
Volume of lease additions
Operating Leases
Cost of leased asset at commencement
Useful Life
Monthly lease payments
Average lease utilisation over useful life
Expected credit losses
Volume of lease additions
Interestbearing liability expenses
Additions/repayments
Interest rates
Financial investments
Target cash balances
Investment return per annum
Investment allocation percentages
Staff Costs including:
Staff numbers;
Average Annual cost per staff member;
Average employer’s payroll taxes as % of salary;
Average annual bonus;
Average healthcare benefits per staff member;
Other cost inputs including
Marketing costs;
Staff costs;
Admin expenses.
Sales tax and corporate tax inputs including rate and payment periods;
Dividend inputs including amount or percentage of retained earnings and frequency;
Fixed Assets including addition amounts and useful life;
Borrowings including addition/redemption amounts and interest rate;
Share Capital additions.
 
 
MODEL STRUCTURE
 
The model comprises of 9 tabs split into input ('i_'), calculation ('c_'), output ('o_’) and system tabs. The tabs to be populated by the user are the input tabs ('i_Setup', ‘i_Actuals’ and 'i_Assumptions'). The calculation tab uses the user-defined inputs to calculate and produce the projection outputs which are presented in 'o_Fin Stats', ‘o_Dashboard’ and ‘o_DCF’.
 
 
 
KEY FEATURES
 
The model follows best practice financial modelling guidelines and includes instructions, line-item explanations, checks and input validations;
The model is not password protected and can be modified as required following download;
The model contains a dynamic timeline that allows for a mix of actual and forecast period across a 5-year period allowing projections to be rolled forward from month to month;
Timeline is split on a monthly basis and summarised on an annual basis; 
Costs are split into: direct and non-direct for better driver-based forecasting;
The model allows for the following number of underlying categories for each line item (these can be easily expanded if required):
Finance lease categories – 10 categories;
Operating lease categories – 10 categories
Interest-bearing liability categories – 10 categories;
Financial investments – 5 categories;
Staff costs – 8 categories;
Marketing costs – 5 categories;
Admin expenses – 15 categories;
Fixed Assets – 5 categories;
Borrowings – 3 facilities;
Apart from projecting revenue and costs the model includes the possibility model fixed assets, borrowings, dividends, corporate tax and sales tax;
The model included an integrated discounted cash flow valuation using the projected cash flow outputs;
Business name, currency, starting projection period are fully customisable;
Revenue, cost, fixed asset and borrowing category descriptions are fully customisable;
The model includes instructions, checks and input validations to help ensure input fields are populated accurately; 
The model includes a checks dashboard which summarises all the checks included in the various tabs making it easier to identify any errors. 
 
 
MODIFICATIONS & SUPPORT
 
If you require any be-spoke modifications or support, we are more than happy to assist. Please send us a message below or contact us on hello@useprojectify.com