Method Financial Financial Model
Fintech Startup Financials (Free Excel Download)
Embedded API enabling any fintech/app to initiate debt repayments across 95%+ of US consumer lenders
professionals from Deloitte
Used by professionals from
About this model
Method Financial provides an embedded API that lets fintechs and applications initiate debt repayments across most US consumer lenders. It gives product teams a way to embed a difficult payment action without building lender connections individually.
The research points to a $0.65 price per repayment and recurring MRR, suggesting a usage-based infrastructure product with possible monthly minimums or volume commitments. Its customers are developers and financial-services companies rather than end consumers.
The model should forecast customer integrations, live users, repayments per user, transaction price, and tiered pricing or minimum commitments. Implementation conversion, customer retention, API-operating cost, and expansion in repayment volume determine the economics of the platform.
A turnkey financial model
Live formulas, no hardcoded values
Outputs are driven by live formulas, so the workbook updates from its assumptions instead of relying on hardcoded results.
All assumptions in one tab
Inputs are clearly marked in the Assumptions tab and separated from calculations, making it clear what to change and what to leave intact.
Statements always balancing
For integrated-statement models, the balance sheet, cash flow, and supporting schedules tie through properly.
Distinct schedules for clarity
Debt, working capital, taxes, and cash flow can get messy quickly. We group calculations in clear schedules, not across disconnected tabs.
No hidden macros or external links
There are no unexplained external workbook links or macros to undermine auditability or portability.
Changes flow through the model
Update a key driver and see the impact carry through the forecast, financing, and return outputs. We never use hardcoded numbers in formulas.
About Method Financial
methodfi.com
How to build a detailed financial model for Method Financial
A complete walkthrough of the business, drivers, and assumptions behind the downloadable Method Financial model - distilled from its pitch deck and publicly available information.
Product & value proposition
Method Financial is an embedded debt repayment API ("rails") that lets developer teams integrate debt payoff flows without building custom lender integrations. Key product claims:
- 95% of US lenders supported [slide 5]
- No credentials required from end-user; real-time account verification with lender [slide 6]
- Persistent payment access without re-authentication [slide 6]
- Embeddable UI components included (secure, compliant) [slide 5]
- Start moving money with just an API key [slide 5]
- Covers debt types: credit cards, student loans, mortgages, auto, and other consumer debt [slide 6]
Use cases surfaced in deck [slide 7]:
- Debt repayment - initiate payments to any consumer debt
- Mortgage underwriting - tradeline paydown with instant verification at closing
- Balance transfers - transfer balances from existing credit lines
Problem they solve [slide 3]: 10,000+ lenders in the US; existing integrations rely on brittle/manual processes (mailing checks); incumbents are costly and insecure; integration timelines up to 6 months; no developer-friendly standard.
Market
- TAM: $6.5B, calculated as:
- $0.65 per debt repayment
- × 10 billion debt repayments per year (US)
Revenue model
- Implied transaction-fee model: $0.65 per debt repayment - this is the stated price-per-transaction used to size the market, and is the most likely unit revenue figure
- Confirmed revenue metric in deck is MRR (Monthly Recurring Revenue), suggesting recurring billing rather than pure spot-transaction fees - possibly per-API-call or per-transaction billed monthly
- Channels: direct developer/B2B sales; fintech apps embed the API
- No explicit pricing page, tier structure, or contract terms disclosed in deck
Traction & metrics
- Launched: May
- Live customers: 4
- LOIs: 6, valued at $250K MRR
- Revenue: "$x MRR" - actual figure intentionally redacted/blurred in deck
- Product Hunt: #3 Product of the Day
- Note: Customer logos on slide 8 are blurred/redacted; cannot read names from image
Competition / moat
- Incumbent framing: existing solutions described as "costly, unsecure, non-developer-friendly, 6-month integration timelines"
- Moat: lender network breadth (95% coverage), no-credential linking, instant verification, persistent access - i.e. network/integration depth
- Comparable infrastructure: Plaid (read-access), Dwolla, Finix - not mentioned but implied by "incumbents are costly" framing
Team & funding ask / use of funds
- Jose Bethancourt - Co-Founder & CEO
- Marco del Carmen - Co-Founder & CTO
- Contact: jose@methodfi.com / methodfi.com
Recommended financial model
- Archetype + why: Usage-based / transaction-volume API revenue model (similar to Stripe/Plaid pricing). Revenue = transactions processed × price per transaction. MRR framing in the deck suggests possible monthly minimums or volume tiers layered on top. This is the correct archetype because the market-sizing equation in the deck itself is price-per-transaction × volume.
- Forecast horizon & granularity: 3 years (Year 1 monthly, Years 2–3 quarterly). Early-stage with unclear revenue base warrants monthly granularity in Year 1 to capture ramp.
- Key drivers & assumptions:
| Driver | Value | Source |
|---|---|---|
| Price per debt repayment | $0.65 | - |
| US debt repayments / year (TAM volume) | 10B | - |
| Live customers at launch | 4 | - |
| Pipeline LOIs → MRR if converted | $250K MRR | - |
| Actual current MRR | Redacted ($x) | - |
| New customer adds per month (Year 1) | 2–4 | early-stage B2B fintech API ramp |
| Average transactions per customer per month | 50,000 | mid-sized fintech app; no data in deck |
| Revenue per customer per month | $32,500 | = 50K × $0.65 |
| Gross margin | 70–80% | typical for API/payments infra; network/ACH costs deducted |
| Churn (monthly) | 1.5% | B2B API, sticky once integrated |
| S&M as % of revenue (Year 1) | 40% | early-stage sales-led motion |
| R&D as % of revenue (Year 1) | 35% | API infra build-out |
| G&A as % of revenue (Year 1) | 15% | lean team |
| LOI conversion rate | 60% | LOIs are soft commitments; standard conversion |
| LOI → live ramp (months) | 2–3 | API integration lead time |
- Scenarios (Base / Bull / Bear - which variables flex):
- Bear: LOI conversion 40%; avg transactions/customer 20K; price erosion to $0.50/txn
- Base: LOI conversion 60%; avg transactions/customer 50K; $0.65/txn held
- Bull: LOI conversion 80%; avg transactions/customer 150K; upsell to mortgage underwriting vertical at premium pricing
- Required sheets / outputs:
- Assumptions - all drivers in one place, clearly labeled vs
- Customer model - cohort-based: new customers per period, active customers, churn, cumulative
- Volume model - active customers × avg transactions/customer/month = total monthly transactions
- Revenue - transactions × price/transaction; reconcile to MRR; include LOI pipeline conversion schedule
- P&L (Income Statement) - Revenue → Gross Profit → EBITDA → Net Income; opex line items: S&M, R&D, G&A
- Headcount plan - tied to opex (optional but useful at seed stage)
- Cash flow & runway - burn rate, cash on hand (placeholder until funding ask is known)
- Scenario toggle - dropdown switching Bear/Base/Bull across key volume and pricing drivers
- Market penetration summary - actual volume vs 10B TAM, implied market share
Frequently asked
Is the Method Financial financial model free?+
Yes. The Method Financial model is a free Excel (.xlsx) download with live formulas. Sign up with your email and the workbook is yours to keep, review, and edit.
What's included in the model?+
A 5-year monthly forecast with P&L, cash flow and runway, valuation (exit multiple plus a DCF cross-check), MOIC/IRR returns, and unit economics, with live formulas throughout.
How was this model built?+
It was built from Method Financial's pitch deck and publicly available information, then structured to investment-banking standards as a fully editable Excel model.
Can I change the assumptions?+
Yes. You can change assumptions and the live formulas will recalculate in the downloadable Excel model.
Have more financial modelling questions? Contact us
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