Cash sweep modelling

Stand alone cash sweep analysis is an alternative metric for refinance risk and repayment ability in cashflow models for project finance. This article outlines the key features of a modelling cash sweep calculation and its application in analysis of a project finance model.

During a Cash Sweep, 100% of cashflow available for debt service is used to repay principal and interest. Stand alone cash sweep analysis is used to calculate the amount of time it takes to repay the debt in full and should not be confused with Cash Sweep mechanics governed by the Term Sheet.

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