Revolving Credit Facility

Description
This spreadsheet enables a comprehensive understanding of the Revolving Credit Facility / Revolver which is an integral part of cash flow modelling for businesses.

The Revolving Credit Facility or "Revolver" can be turned "On" or "Off" through a toggle switch. The spreadsheet highlights interest and commitment fee calculations on RCFs and how to avoid model circular errors while writing these calculations. The model also illustrates how the RCF will be repaid as and when cash flow is available.

The model inputs are highlighted in yellow and should be constrained to these cells only. Please do not overwrite any other cells, as this could potentially compromise the model.

The file is succinct and meant for illustrative purposes only - and users are meant to understand the RCF conceptually and apply their understanding to their own models. As such, the model horizon is only 12 months long.

The spreadsheet contains three tabs:
1- Cover,
2- Manual: This tab contains basic instructions and a glossary.
3- Revolver: This tab holds all inputs i.e. the components of Cash Flow from Operations (cash paid by customers, cash paid to suppliers, tax and interest paid etc.), Cash Flow from Investing and Cash Flow from Financing.

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Model Up.