Understanding Cash Calls

Cash calls are requests for funds from the managing partner of a joint venture to the partners of the joint venture. The funds ensure that the managing partner can manage the joint venture's cash flow for the expenses associated with the joint venture. When the expenses are distributed to the partners, the amounts are drawn from their specific cash call until it is depleted. The managing partner will request new cash calls from the partners as often as needed or as stipulated in the Joint Operating Agreement. Information about each cash call is available to the partners in their Joint Venture Billing report, which can be provided by the managing partner whenever needed.

The managing partner will handle the management of the cash calls including invoicing the partner for the amount requested, drawing on the cash call, transferring cash call balances to other cash calls as requested by the partner, and closing cash calls and refunding amounts agreed upon by the partners.