What Vanward calculates
Debt schedules, effective rates, covenant measures and headroom.
The method
- Solve for the annual effective rate by repeated bisection until discounted future cash flows equal net proceeds, using the annual rate divided by twelve and each cash flow time in months.
- Apply loan terms to scheduled interest and principal and round monetary lines to cents. For deferred financing costs and discounts, effective interest less stated interest is amortization; the final maturity period clears the remaining balance, and account allocations take any residual cents on the last account. Calculate covenant definitions from confirmed account mappings, entered add-backs and caps, using point-in-time or trailing periods as specified. Compare the resulting ratio or amount with the approved threshold.
What the company decides
Loan terms, fees, cash flows, lender definitions, account mappings, add-backs, caps, thresholds and waivers. These inputs and judgments are outside the guarantee.
Where it shows in Vanward
Debt board, loan schedules, covenant worksheets and lender reports.
Method change log
- 2026-11-09 · 1.0 published