What was the amount of proceeds from long-term borrowings for Budget in 2023?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
Proceeds from debt securities of Avis Budget Rental Car Funding (AESOP) LLC —related party | 701 | 306 | 305 | | | (2,563) | (7,017) | (4,019) | | Net cash used in investing activities | (2,753) | (7,346) | (4,299) |
Avis Budget Group, Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) (In millions)
| | 202 | 4 | 2023 | 2022 | |--------------------------------------------------------------
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the proceeds from long-term borrowings in 2023 were $936,000. This figure reflects the cash inflow Budget received from new long-term debt obligations during that year.
For a prospective franchisee, understanding Budget's financing activities provides insight into how the company manages its capital structure. Proceeds from long-term borrowings can be used for various purposes, such as funding expansion, acquisitions, or refinancing existing debt. Monitoring these figures can help franchisees assess the financial stability and growth strategies of Budget.
It's important to note that while proceeds from borrowings represent an inflow of cash, Budget also had payments on long-term borrowings of $818,000 in 2023. This indicates that Budget was actively managing its debt obligations by making payments on existing loans. The net effect of these financing activities, excluding vehicle programs, was a use of cash of $1,210,000, suggesting that Budget's debt repayment and other financing costs exceeded the funds it raised from long-term borrowings during the year.