Expose funding needs and recalculate the financing scenario

Project the cash balance before inventing a funding response. A negative modeled balance identifies an unmet need under those assumptions; it is not a permissible operating cash holding or evidence that a bank has agreed to lend. A desired minimum cash reserve can create an additional need even while the closing balance remains positive.

Use FIN.2 to locate the amount and date of the need, including other receipts, payments, restrictions and available facilities. FIN.10 supplies obtainable financing terms when new finance is considered. Feed a selected feasible financing scenario back into the account: borrowing changes cash and debt, fees and interest change cash and possibly profit and tax, repayments change later money needs. Recalculate until the assumed financing and projected account agree, or return the unresolved condition.

Where interest depends on an average or closing debt balance, a model may require iteration or an explicit algebraic solution. State the timing convention and actual terms. Numerical convergence only means that those equations agree; it does not qualify the loan or cure an infeasible covenant. If financing changes the operating plan, update the relevant driver too. Preserve the unfunded alternative so the receiver can see what the proposed financing changes.