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.
- 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 ».
- 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 »).
- 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.
- Save the object by clicking on « Create » / « Save ».
- 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
