Term Debt Accounts

Term debt represents a fixed outstanding loan obligation. By default, term debt is not affected by cash surplus/deficit balances. You can pay some or all loans early, ahead of amortization schedules, when excess cash is available after meeting the required amortization. Term debt cannot be used as a source of funds.

When an account is a term loan, the input data represents the balance of that loan in each period or the amortization schedule, depending on how you forecast the account.

If you repay a term account early, Funding Options repays the account with the early amortization “coming off of the back end” of the account—it pays the scheduled amortization until paid in full, and only after that are additional amounts paid. Even if early payments are made, Funding Options continues to make all scheduled amortization payments until the balance of the facility is zero.