Funding need and liquidity measures

Methods and settings

Start from cash before draws

Pre-financing cash is the projected cash position before the interval’s debt draws. It already reflects the modeled operating/investing effects, interest and repayments, so it is not simply Opening Cash plus EBITDA. Funding Need measures the amount needed to reach Minimum Cash from this position. After scheduled and automatic admitted draws, Required Funding measures what is still missing. Their difference can include manually scheduled borrowing.

Separate commitment, undrawn and available

Commitment is the configured facility amount. Undrawn Facilities subtract current drawn balances, but availability also applies status, start/maturity and revolving versus non-revolving usage. Available Liquidity adds only the drawable amount to cash. Cash Headroom excludes facilities altogether: closing cash − Minimum Cash. A facility can therefore have undrawn face amount yet contribute nothing to liquidity headroom.

Reconcile a shortage

Assume pre-financing cash of −40, Minimum Cash of 10 and an admitted draw of 30. Funding Need is 50; closing cash is −10 and Required Funding is 20, before any other same-interval change. If another 15 is drawable but Automatic Funding is off, Available Liquidity is 5 and Liquidity Headroom is −5. The undrawn 15 is not cash until drawn. All amounts use the selected display unit.

Understand peaks and closing values

Required Funding and Funding Need are shown as the peak within the selected view period. Cash, Net Debt and available capacity are closing values. A large annual peak can therefore coexist with positive year-end cash. Inspector identifies the actual shortfall date and the availability there. Net Debt = closing debt − closing cash; net cash is retained as a negative value, not floored to zero.

Do not mix different gaps

Required Funding is neither debt nor cash and is not a capacity estimate. Refinancing Gap instead reconciles a maturity against explicit replacement sources. 13W Required Funding uses the same shortfall idea inside the operational plan, whose cash path may differ from Model. Compare the source context and dates before comparing these values.