How does a cash sweep work?

With Cash Sweeps you are able to use excess free cash flows to pay down outstanding debt and / or shareholder loans.

How do you use Cash Sweeps?

You can use Cash Sweeps for Debt and Shareholder Loan objects.

  1. Create a Debt object in the “Debt” section or create a Shareholder Loan in the “Transaction” section. If you want to use Cash Sweep for already created objects, click on it and choose “Edit”.
  2. Enter the parameters like Name, Amount, Issuance Date, Loan Period and Interest. Activate the “Cash Sweep” checkbox (This function is not yet available for the Fixed Redemption Profile “Annuity”).
  3. When you have activated “Cash Sweep”, you can enter the start- and end date of the cash sweep.

Hint: The cash sweep redemptions take place at the same time as the fixed redemptions.

  1. Save the object by clicking on “Create” / “Save”.
  2. In the “Debt” overview you can now edit the Cash Sweep settings: You can set the fraction of the cashflow available for distribution that will be used for additional redemptions of the bank loan or shareholder loan as a cash sweep