Entering loans, interest, and loan payments Follow

Loan entries money you've received, that you'll need to pay back to the lender. When you enter a loan, you'll specify the interest percentage and length of your loan, and LivePlan will calculate the interest and payments automatically. It also incorporates the correct principal and interest payments into your financial statements.

Note: Don't enter your loan payments as a separate expense. LivePlan adds them to the forecast for you.
Note: This feature assumes you are following a standard repayment schedule. Want to pay a loan off faster than required, incorporate a balloon payment at the end, or otherwise customize the payment schedule? In those cases, see Adding a loan with a custom payment schedule.

 

Adding a new or future loan

Use this method for loans you'll place anytime after the start date of your forecast.

  1. Click on the Forecast tab, and then click Financing:
    forecast-menubar-new-financing.png
  2. Click the Add Loan button:
    addloan.png#asset:992
  3. Enter a name for the loan, and select the month in which you'll receive the loan:
    nameloan.png#asset:1123
  4. Indicate the amount of the loan:
    amountloan.png#asset:996
  5. Enter the interest you'll pay and the length of the loan (i.e., the loan terms):
    loan-interest.png#asset:1691

  6. Click Save & Close. The loan will appear in the Financing table under Amount received. The monthly payment will be shown under Payments, and the balance of your debt for this loan will be shown under Balance
    financingtable.png#asset:1092

 

Adding a pre-existing loan

Pre-existing loans are loans you received before the start of your forecast. The steps for a pre-existing loan are just slightly different from those for a future loan. 

  1. Click on the Forecast tab, and then click Financing:
    forecast-menubar-new-financing.png
  2. Click the Add Loan button:
    addloan.png#asset:992
  3. Name the loan:
    nameloan.png#asset:1123

  4. Choose Before plan start date from the list:beforestart.png#asset:1013
  5. Enter the amount you still owe on this loan as of the beginning of your plan:
    owe_at_start.png#asset:1130

  6. Indicate how many payments you have left to make before this loan is paid off:
    paymentsleft.png#asset:1136

  7. Finally, enter the interest rate for this loan:
    annual interest.png#asset:997

  8. Click Save & Close. This loan and its payments will appear in the Financing table in the same manner as the new or future loan described above.

 

Adding a loan with a custom payment schedule

If you need to represent a loan that doesn't match the standard repayment schedule, please see Entering a loan with a custom payment schedule. 

 

Adding special types of loans

Sometimes, your loan will have special terms. The links below offer instructions for some common types of specialty loans:

 

Where does this entry appear in the financial statements?

(For more details, read How LivePlan handles loans and other financing.)

 

When you enter a Loan or an Other entry, only the interest portion will appear in your Profit and Loss table. This is because the interest is the only true cost your business incurs in the loan:

financing-loan-pandl.png

Loans will appear on one or two lines of the Balance Sheet, depending on their length. A loan that will be paid back within 12 months appears as Short-Term Debt. A loan of longer than 12 months will be divided into Short-Term Debt and Long-Term Debt. For more on this, read What is the difference between short-term debt and long-term debt?

financing-loan-balancesheet.png

In the Cash Flow, similarly, loans (or portions of loans) may be considered Short-Term Debt or Long-Term Debt:

financing-loan-cashflow.png

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