Modelling Debt - Spark Financial Model

This video covers modelling debt within the Spark Financial Model.

by David Liu
Financial forecasting tool for startups and small businessFollow 12

164 views|Start the discussion!|Bookmark

Description
The tutorial walks through an example so that you will know where to start when it comes to managing debt within your own model. The example starts with the loan used to fund startup costs, like paying for IT equipment. It demonstrates this money being drawn, and with a limit of $50,000. There are 2 types of loans: those that are drawn immediately where you receive cash straight away, and those that are undrawn, or held in reserve like a credit card, available to you when you need it. The fund working capital field relates to undrawn loans like credit cards or line of credit for everyday costs of running the business or the working capital. This is not relevant for a drawn loan. Our startup loan starts in the first month and is paid off in 3 years or 36 months.

The video walks you through the example using a screen sharing method so that you can easily understand and follow the process of modelling debt.

If you'd like to purchase the Spark Financial Model, you can do so here:
https://www.eloquens.com/tool/bRzt7J/startups/financial-models/spark-financial-model

Length: 3 minutes 50 seconds

This Best Practice includes
1 Video File