Whether you’re a company, a fund, or a project… it’s likely that you have to repay debt.

In this video we cover a hands-on approach to modeling debt. This model has been set up with four different repayment types, expressly for the purposes of comparing and contrasting different repayment types.

We start with understanding the support infrastructure around the debt calculatiosn – not just the dates timestrip, but the Inputs , the debt tenor, repayments remaining and a few others .

This really demonstrates what a best practice financial model setup looks like (aside from the Inputs on the calculations sheet – but this helps to keep the model simple and more understandable!)

We get in to the five general features of a debt account, like the corkscrew account, drawdowns, interest calculations, principal repayment, and a repayment check. A repayment check, you say?

That’s right, how beneficial would it be to be able to ensure your debt is repaid, in whatever scenario you run? I thought so… very beneficial. That’s what this does.

Finally, with graphs and summaries we go line by line through the four different debt calculations to deconstruct what makes them tick. That’s why this tutorial is so long at almost 20 minutes!

To see debt like this integrated into a model, the Complete Corporate Finance Model Template, or the Blueprint for Project Finance Modeling contains this, and training for linking everything up.