Relieved time pressure
The financial controller is now able to spend the time that was used updating the model on analysis of the results.
Enhanced confidence
The model enabled the CFO to instil confidence in the company's lending banks.
Sophisticated reporting capabilities
Since the business was growing rapidly, we needed to improve its monthly reporting and forecasting capabilities.
Challenge
Paybreak Ltd, a rapidly growing Fintech lender, had an existing model which was built using Modano (an Excel based modelling tool).
Their existing monthly updating process was a drain on resources, since it was very manual and required some calculations to be done outside the model. Besides improving the reporting capabilities, the business also needed a model which enabled them to forecast their capital requirements under several growth scenarios.
Solution
Our consulting workshop session identified a need to model each of the loan maturities separately in order to correctly forecast their cash position.
A sophisticated approach to modelling the loan portfolio ensured that the overall portfolio loan balance and revenues were calculated for all loans. Actual data was extracted from the company’s QuickBooks accounting system, using power query in Excel to automate the updating of actuals each month.
Results
The implemented tool is a great improvement on the previous model used by the company.
This resulted in time pressure on the financial controller being relieved, as they’re now able to spend the time that was previously used on updating the model, to analyse the results and validate the assumptions.
The model enabled the CFO of the company to instil confidence in the company’s lending banks and to raise new finance at a significantly lower cost of funds.
