Reading peak debt and peak equity

What peak debt and peak equity mean, and how they relate to your facility.

Peak debt

The largest debt balance at any point in the project. It tells you the minimum facility size your senior lender needs to commit.

Peak equity

The largest equity balance at any point in the project. It tells you the maximum cash you (or your investors) will have at risk.

Where to look

The output panel shows both. The cashflow chart marks the peak month with a vertical guide so you can see exactly when it happens.

Sizing the facility

Add a buffer to peak debt before asking your lender for the facility size. The buffer covers cost overruns and timing slippage. A common starting point is 5 to 10 percent.

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