Schedule of Funding and Distributions

Description
This template will be useful if you have a startup company, an affiliate or a company division with volatile cash flows. In some periods there might be shortfalls which need to be funded externally, while in other periods there might be excess cash which can be distributed.

The logic of this template is as follows:

1. You need to decide on the funding period (it can be 3 months, 6 months or any other time period). This is how often you would like to fund the company or distribute excess cash.

2. The template takes the cash balance at the beginning of a funding period, forecasted monthly cash inflows and outflows during that period and determines if there will be any deficit of cash in any month.

3. In case a shortfall is anticipated, it calculates how much funding is required in the beginning of the period (taking into account the minimum cash balance which you also provide).

4. If by the end of the funding period there expected to be some extra cash, this cash is distributed as of the end of this period.

5. But if in the next period there will be a shortage, this distribution is reduced by the amount you need to set aside to cover this shortage in the next period. if it is not enough, a funding amount is calculated for that next period.

A few additional considerations on funding matters:

- Reduction of share capital can be complex from legal standpoint and cannot be made very often.

- In some countries you cannot pay more dividends than the amount of net assets you have.


- There could be other limitations imposed by your local requirements. Contact me if you need help creating a more complex funding model addressing your particular situation.