Commercial Banking
Build a debt and liquidity schedule
What you will learn
Identify the lowest cash balance and any funding shortfall.
Closing debt = opening debt + drawings − principal repayments
Roll each debt balance through drawings and repayments by period. Calculate cash interest on the convention in the agreement and align all movements to their payment dates. Build a cash schedule separately so a positive quarter-end balance cannot mask a shortfall before collection. Check committed availability and minimum cash requirements. A fictional borrower opens with ₹40 crore debt, draws ₹8 crore and repays ₹12 crore. Closing debt is ₹36 crore.
A fictional borrower opens with ₹40 crore debt, draws ₹8 crore and repays ₹12 crore. Closing debt is ₹36 crore.
Roll each debt balance through drawings and repayments by period. Calculate cash interest on the convention in the agreement and align all movements to their payment dates. Build a cash schedule separately so a positive quarter-end balance cannot mask a shortfall before collection. Check committed availability and minimum cash requirements. A fictional borrower opens with ₹40 crore debt, draws ₹8 crore and repays ₹12 crore. Closing debt is ₹36 crore.
Which item lowers outstanding debt?