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 »).
cash sweep
  1. 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
fraction cash sweep