How do I use Exl-Plan to forecast external funding needs?
Build your projections (sales, costs etc.) but, initially, exclude any assumptions about external funding. Run Exl-Plan and review the rows in the monthly, quarterly and annual balance sheets relating to Line of credit (Overdraft). The peak values in these rows will indicate the external funding need. The next question is whether the funding peak can be lowered and what is the optimum type, terms etc. of funding – use Exl-Plan to explore alternative scenarios.
