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Car rental invoice format for Research and Development

if you're looking to create a set of financial projections for a rental car business then you've come to the right place we have created a financial projection template built specifically for rental car business models and I'm going to walk you through how this template Works how to fill it out and just make sure that this is an easy process for you the purpose of the template and really the purpose of our business projection hub is to help small business owners and entrepreneurs create projections for potential investors and lenders I spent about a decade as a SBA lender a small business administration lender where we made over a thousand small business loans during my time there and I saw a lot of financial projections that really ruined a loan application right so we saw apple or projections that just didn't make any sense and actually caused the loan committee or the underwriters to decline the application now your projections may not be the only thing you need in order to get approved for a loan but they can definitely cause you to get declined and so my hope here is to help you through the process so that your projections are reasonable and understandable and what a potential investor or lender would expect to see so that this isn't the thing that causes you to get the immediate decline again a little bit of background on our company where projection hub we help Founders create Financial projections have been doing this for a decade now I've helped over 50 000 entrepreneurs create Financial projections for all sorts of different Industries and specifically today we're talking about this rental car template and we will put a link to this template in the description of the video below and you'll also if you stick around to the end of the video I'm going to give you a access to your coupon code that you can use as our thank you for sticking around to the end of the video that you'll be able to use that coupon code as a disk and get a discount at checkout on this template so with that let's go ahead and dive in let me show you how the template works okay so we are on our at a glance tab here and this is just gonna this is the end of the process so we're going to show at the end of the process you'll get a number of different charts and graphs and kpis different use of startup funds graphs and tables that will be useful to throw into a business plan or a pitch deck you'll also get a five-year cash flow summary five-year income statement and a five-year balance sheet projection you'll also get the income statement cash flow and balance sheet all broken down by month for each of the first five years so you get the monthly level details of it as the annual summary if if you need that but in order to produce all these reports we have a bit of work to do so we need to go back to our input assumptions here and walk through this so the first thing you need to know is that any cell that's highlighted in light blue is an assumption that you can change without breaking something in the model so we've got the model filled out with some default assumptions here I'm going to walk you through how we filled that up put in your company name we've got a projection start month of January 1st 2024 a starting cash balance of 200 000. so that 200 000 here is coming from our personal investment into the deal of 200 000 and we're looking for additional investment of 1.5 million to come in month one we have the ability to set accounts receivable starting balances if you're an existing business An accounts payable starting balances as well as terms so this is basically saying okay what's the average days to receive payment we're saying 15 days on average to receive payment after providing the rental car and this could be because you work with some Enterprises or some businesses that you may allow them to rent multiple cars throughout the month and then you send them one monthly invoice for all the rentals and then they have 30 days to pay or something like that now you're just average consumer that is coming to rent a car May pay up front right and so maybe on average it averages out to 15 days to receive payment so that's the idea same thing on accounts payable is that some of your bills you may get terms from your vendors you may not have to pay for 30 days some of them you'll have to pay right away and you can change this this is just going to impact your cash flow statement fixed assets so this would be for assets other than the rental vehicles themselves so we've got let's say we have a we're renting a building a dispatch lot but maybe we did a hundred thousand dollars worth of leasehold improvements to the space and so we've entered that in here a hundred thousand dollars in one zero and we're going to depreciate that over the life expectancy we also have equipment now this would be equipment other than the rental vehicles as well so maybe it's a lift to get vehicles up and do maintenance or it could be various other equipment here okay so now here's where we would enter in the vehicles that we have in our Fleet so we've got different types here economy cars compact mid-size and so on and we've got five of each type of vehicle here we could either purchase or lease these I'm going to assume that we're purchasing them all but you could lease these and if you lease them you'll notice that it blacks out the sections that are no longer relevant because all you'll need to know is what is the monthly payment per vehicle that for the lease now if you're purchasing you'll see the monthly payment over here is blacked out instead we're going to look at okay what's the vehicle purchase price here so we've got a purchase price of 17 500. and it this years until sale this is saying okay we are going to rent these vehicles out for five years after we purchase them and then ultimately we will sell them sell our Fleet at we have an equation here set up it's 25 of the purchase price is what we have set up now you may have a different a different business model you may rent cars for two years and then sell it for 60 of the purchase price or whatever that might be so you can change those assumptions right we have we have the ability to select what month we're purchasing the group of vehicles so we're saying these five vehicles were purchasing in month one now this group here these five premium or luxury Vehicles we are not purchasing until month six and then what we have the ability to do here is finance get a loan for each vehicle and so again we have an equation set up that is taking the vehicle purchase price we're saying 0.9 so 90 financing or assuming 90 financing at a six percent rate and we're and the loan will be a 16 month loan and then additionally we have the ability to put in a working capital loan that would be above and beyond loan that's not tied to specific Vehicles so let's just let's just put in a fifty thousand dollar working capital loan here as an example okay next we're going to go to our input Revenue tab here and what we'll see is we have different we need to set up our different Revenue types so we can have rental cars that we rent out per mile per hour per day I'm going to assume that for all of these vehicles we're all on the per day rental type and essentially what needs to then happen is you need to set assumptions for all the per mile vehicles and all of the per hour rental vehicles and then ultimately we'll get down to our per day Vehicles now since we had selected per day we'll see that this is what's populated with our vehicle types here because we selected per day that's why it's showing up down here now what you may want to do if you're not using one of these sections let's say we're not using per hour Vehicles we can simply highlight that section highlight that whole section right click and click hide and then that section will just be hidden on our import Revenue tab now we don't want to delete it we'll just hide it so we don't have any reference errors in the model okay so now that we're going to enter in some more assumptions on our per day vehicle rentals and we're saying okay the average day is rented per month is 20 with the average rate per day for each vehicle type we can see the average charge per mile here so this could be where you have an additional charge per mile that's above and beyond just your day rate right so you so this common example might be that you get with your day rate you get 50 miles for free or without any additional charge but if you go over 50 miles then you may have to pay additional billable miles or a billable rate per mile this box truck example here let's say we've got an average rate per day of 125 and 25 cents per mile what we're saying here is on average the box trucks are driving 50 miles per day and we're going to build them for all 50. at the 25 cents per mile so this is how much they're actually driving and this is how much we're charging them per mile now let's say you wanted to give them the first 25 miles for free so the first 25 miles we don't charge for it but then anything beyond that we're going to charge our 25 cent per mile rate that's how you'd enter this in so we'd say okay there was they went 50 miles we're only going to build them for 25 of those miles and then we can also enter in additional fees per rental so this could be things like Insurance probably most commonly well that will allow you to calculate your per day vehicle Revenue and then we can enter in our various cost of goods sold and variable expenses here so we have maintenance and repairs and miscellaneous expenses that we can put in on a per mile basis and then we can also have things that are a per rental basis so things like cleaning that we're saying it's going to cost us 25 every time for each rental for a cleaning fee and that will give us our cost of goods sold the rest of this is just calculation next we can go over to our input other expenses or our operating expenses Tab and we have a number of different operating expenses we can enter here we can set different categories of expenses and then the key thing here is that we can set different cost drivers and so what that means is for example we could have expenses that are fixed a fixed dollar amount so let's say for advertising we're going to spend 500 a month and it's just a fixed cost but maybe something like insurance insurance is a per vehicle basis so we're saying okay per vehicle that we have in the model it's 150 per month that is our cost for insurance same thing with license plates now we may have we may have some expenses that we actually want to be a percentage of Revenue so actually advertising could be a good example of that so let's say we wanted it to be a percentage of total revenue and we wanted to spend five percent of total revenue on Advertising so we would enter that in as 0.05 0.05 would be five percent and you can enter that in and the model will automatically add five percent of the total revenue each month as an advertising expense okay and our final input tab here would be our salaries and owner draw tab so we can have our sales reps here with a annual compensation of 55 000. we can set say there's three of these types of employees we've got three sales reps on the team we have an office manager and a vehicle detailer and we can say what month they started and ended so let's say maybe we don't want to start with the vehicle detailer we're not going to start until month six and so we could change that here you can also set up an annual raise percentage for those employees as well and that is really it that brings us back to where we started and you can see your profit and loss at a glance and check out your cash flow statement to make sure that your cash flow positive or that you're not going to a negative cash balance for example and see when you break even and those sorts of things again if you have any questions about how to fill this out or need some help that's why we're here we're happy to help with that so please don't hesitate to reach out at support projectionhub.com and again as a thank you for sticking around to the end we have put a link to a form that is in the description of the video below you can fill out that form and we're going to email you our most up-to-date coupon code where you can get a discount at checkout when you buy this template as our thank you to you for sticking around so again any questions leave us a comment in the comment section below or Reach Out directly at support projectionhub.com and we'll do our best help thanks [Music] [Applause]