How to handle rate increases i.e rate or CPI rate increases : AssetAccountant

How to handle rate increases i.e. yearly rate or CPI rate increases Print

Modified on: Mon, 11 Dec, 2023 at 3:25 PM

AssetAccountant can handle yearly or CPI interest rate increases and generate a payment schedule to include these changes each year.

To enable rate increases to be added each year, AssetAccountant has an Annual Adjustment functionality to automatically create estimates of changes to your payment schedule over time.

So, for example, if you estimated CPI at 3% at the start of a lease, AssetAccountant can adjust your future payments accordingly.

Once CPI becomes known, it's possible to Refinance the lease to take account of the actual payments going forward and again apply an annual adjustment estimate.

With the interest percentage used for operating leases / right of use leases - if you enter 5% as your rate, AssetAccountant takes this to mean a 'daily' rate and not an annual rate.

Thus 5.12675% iis set as the effective annual rate in the schedule generator.

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How to handle rate increases i.e. yearly rate or CPI rate increases Print

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