A loan is typically received from an external source that provides funding. You can add a loan to your budget using the Loan template. All you need to do is complete the terms of the loan and the impact to your budget is automatically calculated. 

Add a loan using the template

To add a loan to your budget: 

  1. Click on the Other income and expenses group in your budget structure tree.📝 The loan template is available only from the Other income and expenses group. 

  2. Click the + to add a new budget line.

  3. Add a descriptive name to the budget line and choose the Loan type from the dropdown. The Loan template is displayed.

  4. Click the check mark (✔) or Enter to add the budget line.

  5. Enter the loan details. The preview pane shows the impact to your budget in both cash and P&L terms.

Field-by-field description

In addition to the standard fields, like Date range and Currency found in every budget line template, the following fields are unique to the Loan template:

Loan amount is the principle amount of the loan.

Method is the manner of paying back the loan.

Options:  Fixed installments/Interest only/Balloon/Fixed principal/Custom schedule.

📝 The method selected directly influences the fields displayed in the template. For example, if you already have a loan and the loan terms don't match any other method, you can select Custom schedule and enter the loan payment amounts every month. This option doesn't require that you know all of the loan details. Only the amounts you enter are used and no calculations are made.

Drawdown on is the date on which you can access your funds.

Loan term is the period of time, in months, in which a loan is repaid.

Interest rate is the percentage of the loan charged as interest (or the cost of borrowing) to the borrower.

Payment terms is when payments should be made.

First principal payment after X months is when to start payment toward the amount of the principal owed (by default, this field is empty).

See your loan in the sheets

You can see the influence your loan budget line has on your Profit & Loss, Cash, and Balance sheet reports in the Sheets view:

  • Profit & Loss
    Under the Other income and expenses group, the Loan budget line displays the monthly interest expense. 

  • Cash
    Under the Other income and expenses group, the loan payment amount appears at the time the loan was taken, or on the drawdown date.  Your payment of the principal and interest can be at any time throughout the loan period, depending on the loan method you choose.  For example, if you choose Fixed principal, you can decide after how many months you would like to pay the first principal payment and whether or not you want to pay monthly or quarterly.

  • Balance sheet
    Depending on the number of months you define for the length of the loan term, the location of the Loan budget line in your Balance sheet report is different.

In short term loans:

  • The principal will be under Short term debt.

  • Any interest that isn't paid at the time the interest expense incurred, appears under Other current liabilities.

In long term loans:

  • The amount of the principal that is repaid in the short term period appears under Current portion of long term debt.

  • The amount of the principal that is not repaid in the short term period appears under Long term debt.

Any interest that isn't paid at the time the interest expense incurred, appears under:

  • Other current liabilities for interest to be paid during short term.

  • Other long term liabilities for interest to be paid during long term.

📝 If you take a loan before the budget date range, the balance sheet displays your monthly change, but you will not see the balance of your loan. As such, it is recommended that at the beginning of each budget year, you update the budget beginning balances.


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