Loan Model Question

[tungsten]

I'm trying to set up a basic model with a single loan, interest and principle repayment to a capital fund, and then reinvest a percentage of profit into the loan. Are there any existing models for this setup? Any suggestions? I'm basing it on a dot-for-profit microfinance concept.

[Administrator]

Have you seen the PLE tutorial at
http://www.public.asu.edu/~kirkwood/sysdyn/VenPLE.pdf

That takes you through a simple savings model (it would not take a lot to convert it to what you need).

[tungsten]

Thanks for the tutorial - it's a good one

[tungsten]

I'm not quite sure how structure it and put the equations in for reinvestment. Are there other tutorials that you could direct me to?

[bppro]

Hi,

If I understand what you're trying to do, I guess you could have two stock and flow structures : one to keep track of the debt to be paid, and the other one to keep track of the investment money. The two would then be connected because part of the investment money would serve to repay the debt.

Take a look at my model and tell me if that helps you.

BP