Available modeling methods
| Method / input | Behavior |
|---|---|
| Simple target balance | One forecast debt target, with borrowing or repayment required to reach it. |
| Advanced loans | Opening principal, rate, dated draws, repayments, maturity and supported expense events. |
Loan movements and interest
Advanced debt calculates interest over the intervals between dated movements. A draw increases the balance for the remaining period; repayment reduces it. Repayments cannot exceed outstanding principal. Borrowing and repayment are shown separately in financing cash flow rather than netted into revenue.
Debt versus automatic funding
A cash deficit can create a separately identified short-term revolver. This represents modeled financing need, not approved credit. For an acquisition, the LBO has its own entry debt tranches, annual PIK, mandatory amortization and sweep assumptions downstream of the operating model.
Check a midyear borrowing
Create a loan, enter opening principal and add a dated draw. Compare interest with a year-end draw of the same amount. Inspect closing debt, financing cash flow and cash without adding a separate manual cash receipt.
Documents the current implemented behavior. Example assumptions are not market data.