Model Bucket

Debt sustainability model for financing any size business over various payback periods

Whether your funds are from private sources or the bank, this model can give you a more realsitic view on how capable your business is of repaying its debt.

By inputting your company's results for this year (or your forecast numbers for the coming year), this model will extrapolate a simple forecast and allow you to determine your company's capacity to repay debt. Debt repayment is analysed over various fixed repayment periods (where Interest and Principal is repaid simultaneously) as well as under an interest only scenario where amortisation of the loan is flexible.

This model allows for:
- various types of manipulation including sensitising of revenue forecasts (ie. what if only 90% of forecast growth is achieved)
- fixed repayment periods between 3 and 15 years
- variable interest rates
- the ability to choose how much of your cash surplus you wish to use for debt repayment
- the ability to cater for any tax repayment plans
- the ability to analyse these different scenarios all simultaneously
- and a neat and professional reporting template that highlights key line items for readymade presentation.

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About the author

NIC_Models

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Reviews

ChrisDunwill

0 models

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StarStarStarStar-

10 Dec 2011

Solid model, looks good and functional. Being able to easily sensitise revenue streams is a very useful feature. Happy to recommend this model, it saved me a bunch of time!

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