Add a loan to my budget

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 with the template

To add a loan to your budget:

1. From the Other income and expenses group in the budget tree, click the plus sign to add a new budget line.

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

3. Click or type Enter to add the budget line.

4. Enter the loan details and click Save.

   From the dropdown list, you can preview the impact of the loan by switching between Preview of Cash and Preview of P&L.

In addition to the standard fields, the following fields are unique to the Loan template:

Field	Description
Loan amount	The principle amount of the loan
Method	The manner of paying back the loan
Options	Fixed installments/Interest only/Balloon/Fixed principal/Custom schedule
Drawdown on	The date on which you can access your funds
Loan term	The period of time in months in which a loan is repaid
Interest rate	The percentage of the loan charged as interest (or the cost of borrowing) to the borrower
Payment terms	When payments need to be made
First principal payment	After X months is when to start payment toward the amount of the principal owed Default: empty

View your loan in 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.

For 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.

For 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.