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See attached word do for details of what is required in the model.
The business is a peer to peer lending facilitation model.
The way it works is we provide the platform through which investors/lenders can lend money to people who want to borrow money. We evaluate whether someone is suitable for a loan and if the borrower is approved we then put the loan into our “market place”. Investors/lenders can then lend some or all of the money to a borrower. A borrower may end up with multiple people providing funds to make up the loan amount.
In return for providing facilitation services we take a portion of the loan interest. For example we will take 4 percentage points i.e. if the loan is earning 15 percent interest we will take 4 percent and the investor will get 11 percent.
We will also charge the borrower a loan establishment/origination fee. This will be a one off fee of between 1 and 5 percent of the loan amount.
The advantage of the model is the investor gets a better rate of return than if they were to put their money in the bank if they spread their money across multiple borrowers and the lender gets a competitive interest rate.
There will also be a secondary market place for lenders to on sell their loans in a second hand market space we facilitate.
We would like someone to create a financial model which is designed in such a way as to allow us to change key variables easily so we can see the viability of various scenarios.