Min and Max Functions for Modelling Revolving Credits

[@ogundelevictor6744]

This is the best revolver explanation have seen. Well explained. Excellent

[@hands-on-data]

Thanks so very much.

[@kevinassang3158]

Very good, thanks

[@teniola5536]

This video was very helpful. But i am wondering why the borrowings didn't flow into the cash balances like the interest payments.

[@hands-on-data]

Teniola, Thanks very much for watching and commenting. You observation correct and was an omission I must admit. That would have involved a circular reference issue but that can be tamed with interactions activated and an IF function to trap irreversible errors. Thanks very much.

[@theatmp97]

Shouldnt you include the effect of the tax shield?

[@visheshgupta5948]

Can I get this file?

[@Justin508]

Very clear. Great explanation! Is the balance usually paid in full at the end of each year, or does it vary depending on the credit agreement? I’m building a LBO model and trying to determine how our borrowings are amortized, if at all. Any insight would be greatly appreciated.

[@hands-on-data]

Thanks for the compliment. As you have rightly inferred, agreement defines the mode of payment. Usually, quarterly