Equipment Rental Service Financial Model Template
Running an equipment rental business is hard work. First, equipment gets damaged or lost; then there are employees to manage, bills to pay, and decisions to make about purchasing new inventory. A lot is going on, so the last thing you want to do is spend hours messing around with spreadsheets.
This is why we created the financial model template for rental services businesses. Poindexter allows you to create professional-grade financial forecasts in minutes without the need for complicated accounting rules and formulas. So whether you need to create pro forma financials for a bank loan or just want to see if purchasing a new piece of equipment makes sense right now, Poindexter was built to make financial forecasting simple.
How the Rental Service Financial Model Works
We've designed Poindexter from the ground up to make it easy for anyone to create professional forecasts without hiring a professional. Our approach is based on the idea that although your business is unique, the equations calculating revenue are not. So, we've created some pre-built business model "components" you can easily stitch together to create your plan. All financial results are then automatically generated.
Creating a budget for the new inventory you were considering just got that much easier. Just select the appropriate component, adjust a few assumptions, and you're all done!
We've created this template to use as a starting point and give you a sense of how everything works, so you can quickly make adjustments to make it your own.
The revenue streams we've included in the template are calculated based on two different methods. The first method is based on a forecast for the number of hours each month you expect to have a piece of equipment rented out. The second method is based on a forecast for the number of days each month a piece of equipment is rented out on average. If you want to use another metric to forecast revenue, then updating the model only takes seconds.
To give you a sense of how costs work, we've included a few examples of "components" demonstrating standard expenses such as repairs and maintenance, salaries, and rent. Adding, removing, and adjusting costs only takes minutes.
Adding balance sheet transactions to your forecast can be quite a daunting task if you're new to forecasting. We've done our best to make it simple and this template comes pre-populated with example equipment purchases, so you can see how easy it is to add new assets to the balance sheet.
Full Pro Forma Financial Statements for Your Equipment Rental Service
Now it's time for all the hard work you've put in to pay off. All of the components and assumptions you've included are used to automatically compile all financial results, including full pro forma financial statements. Some of the outputs Poindexter generates include:
- Pro Forma Income Statement (P&L)
- Pro Forma Balance Sheet
- Pro Forma Cash Flow Statement
- Charts, graphs, dashboards, and more!
Once you're satisfied with the plan you've come up with, you can easily share your plan with others or download everything to Excel for presentations and more!