Manage Strategy: Add a Loan

This article will show you how you can use the 'Add A Loan' strategy within the Three-Way Cashflow Forecast.

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1. First head to the Forecasting Tab and select the Three-Way Cashflow Forecast section. 

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2. You will be shown the company's baseline three year cash on hand rolling projection. If you or your client is unsatisfied with what lies ahead, you can select the 'Manage Strategy' option to see all of the strategies you can implement into the forecast. 

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3. There are six different strategies to implement and unlimited What-If Scenarios to compare results against the baseline projection. We will focus on the functionality in the 'Add a Loan' strategy. 

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4. You will fill out a description of the loan, or give it a name for identification purposes. 

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5. Next you will enter the anticipated down payment amount. If there is none, then simply enter $0. 

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6. After the down payment, you will enter the total value of the loan. 

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7. Now you will enter the annual interest rate (%) on the loan. Simply enter '0' if does not apply. 

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8. Then choose when you will receive the funds and begin the term of the loan. 

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9. Lastly, enter the term or duration of the loan to get an estimated monthly payment value. 

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10. Your estimated monthly payment will be shown. You can then adjust the different terms of the loan to find an appropriate monthly payment. 

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11. If you are looking at new loan terms to refinance an existing loan, you will be able to select the loan you wish you refinance from the drop-down menu. 

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12. Once you've confirmed which loan you'd like to refinance, enter the original total value of this refinanced loan. 

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13. Then enter the original term or duration of the refinanced loan. 

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14. Next enter the original start date of the loan being refinanced. 

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15. After that, enter the annual interest rate of the loan being refinanced. 

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16. The final step is to decide which line item will reflect the new interest expense amount for the refinanced loan. 

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17. Click 'Save' and you will automatically be redirected to see the impact on cashflow for the next three years. 

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Thanks for reading! If you have any questions please contact your dedicated account manager, or reach out to us at support@myprofitsee.com.