Preparing your Financial Model
The financial model should be prepared preferably in USD, and in MS excel or equivalent software. Any historical data available should be included (from previous years/months), and the model should clearly demonstrate (i) the current financial situation of the project (invested and disbursed amounts), (ii) all future investments already committed and (iii) the Investment Proposal presented in your Project Proposal (for additional investment).
The assumptions regarding revenue, operating expenses, planned capital expenditures, taxes and any other costs or sources of revenue and financing should be clearly stated.
The time frame should cover the main planned milestones of the project, any planned growth periods and the expected maturity of the Investment Proposal, as applicable. The model should ideally present the calculation of financial indicators such as internal rate of return (IRR), return on capital invested/expenditure (ROCE), payback period, point of break even, annual debt service coverage ratio (DSCR) and interest coverage ratio (ICR) (both based on EBITDA).