Enter the total interest paid, ending long term debt, and beginning long term debt into the calculator to determine the cash flow to creditors.
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Cash Flows to Creditors Formula
The following formula is used to calculate the cash flow to creditors.
CFC = I – E + B
- Where CFC is the cash flow to creditors
- I is the total interest paid
- E is the ending long term debt
- B is the beginning long term debt
Cash Flow From Creditors Definition
A cash flow from creditors is defined as the total cash flow a creditor collects from interest on a loan.
Cash Flow From Creditors Example
How to calculate cash flow from creditors?
- First, determine the interest paid.
Calculate the total interest paid.
- Next, determine the ending long term debt.
Determine the amount of long term debt at the end of the period.
- Next, determine the beginning long term debt.
Determine the amount of long term debt at the start of the period.
- Finally, calculate the cash flow from creditors.
Calculate the ash flow from creditors using the equation above.
This is a financial term used to describe the total cash flow a creditor is collecting due to interest and long term debt payments.