Module VI· Cash Sweep ModelingIntermediate
Question

How do you use the MIN function in a cash-sweep build?

Answer

Use MIN to cap repayment at the lower of available cash and debt outstanding. Example: optional repayment = MIN(available cash, opening debt after mandatory amortization). This prevents negative debt balances and ensures the sweep does not use more cash than available. For multi-tranche waterfalls, update available cash after each tranche.