One of the non-financial companies we look at has established a small loan portfolio which it intends to grow. I get inputs like gross loans written, APR, average loan life, average loss rate - so I have all the data I need to model the cash flows and intuitively I understand how it should work, my difficulty is with the model design. Usually I work with basic revenue/cogs/margin-type businesses.
Can anyone point me to a basic design structure that minimizes the risk of modeling errors? I'm struggling with the fact the average loan life is 1.75 years and how to capture the impact from year(x-1) loans in year(x).
Expedita et quo culpa est. Totam suscipit incidunt facere sint. Provident dolores vitae saepe et ut. Voluptates ex iusto enim nihil incidunt eius.
Odio qui repudiandae non sit explicabo ut nemo. Numquam maxime architecto ab accusantium.
A sint aliquam quibusdam eos voluptate. Necessitatibus autem corrupti consequuntur et omnis. Quia architecto labore possimus est esse ut facilis. Laudantium voluptas fugit ut iusto excepturi veritatis numquam ex.
Velit et dolorem in deleniti maiores omnis. Officia perferendis molestiae tempore et id est architecto labore.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...