L3VLUP

Debt Sculpting

Shaping a loan’s repayment profile so that debt service in each period equals that period’s CFADS divided by the target DSCR, rather than following a flat amortisation. The loan is then the present value of the sculpted service at the loan rate. It repays more in strong periods and less in weak ones, holds coverage constant, and maximises how much can be borrowed against lumpy cash flows.

Where Debt Sculpting comes up

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