Debt Drawdown against Fixed Assets
Originally published: 07/05/2021 19:37
Publication number: ELQ-14654-1
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Debt Drawdown against Fixed Assets

Template and formulae for calculating debt drawdown against fixed assets, such as machinery.

Description
This workbook allows you to calculate your debt account for debt that is drawn-down against a fixed asset, such as a plant or machinery.

This workbook includes the following:

1) A cover tab providing instructions and guidelines to the calculations worksheet.

2) A calculations tab providing the correct structure and formulae for calculating debt drawdown against a fixed asset.

INSTRUCTIONS:

The yellow cells are input cells for you to insert your own company-specific data

1) Insert the cost of your fixed assets against which you are drawing down debt
2) Insert the drawdown percentage (what percentage of the cost of the assets are you drawing down?)
3) Insert the interest rate that you are required to pay
4) If you are an early stage business, this model allows you to calculate the debt account while paying only 50% of the interest, for example (Row 10).
5) Insert the principal repayment period (i.e. number of years for the debt to reach maturity)

USES/APPLICATIONS:

1) You can use the outputs of this tab for calculating your cash and liabilities in your balance sheet.

2) This workbook can also be used in calculating your cashflow

3) It can also be used to calculate your interest paid each year in order to calculate PBT in your P&L

This Best Practice includes
1 Excel workbook

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Further information

Template and formulae for calculating debt drawdown against fixed assets, such as machinery.

1) You can use the outputs of this tab for calculating your cash and liabilities in your balance sheet.

2) This workbook can also be used in calculating your cashflow

3) It can also be used to calculate your interest paid each year in order to calculate PBT

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