In LivePlan, when you enter a standard loan into your forecast, the software will automatically begin applying payments the month after the receipt of the loan. If you're taking on a loan where you won't make payments right away (also known as "deferred payments"), the Add Other financing entry will allow you to represent that.
Entering a deferred payment loan
- In the Forecast tab, click More. Then click Financing:
- In the Financing page, click the Add Other button:
- Enter the name of the loan. Click Next to continue:
- If your loan will have interest calculated on it, enter that percentage. If your loan will have no interest, enter a zero.
- Then, click the button to indicate whether you will pay the loan back within 12 months or not. Click Next to continue:
Note: a loan you'll pay back within 12 months is considered short-term debt in your financial statements. A loan you'll pay back in more than 12 months is considered long-term debt. Read What is the difference between short-term and long-term debt?
- The next overlay represents when you will receive the money. Enter the loan amount you'll receive in the month you'll be receiving it. Click Next to continue:
- The final overlay represents your payment schedule. Enter the payments you'll be making in the months in which you'll make them:
Note: If you aren't sure of your payment amounts, you may want to consult your lender, or do an online search for a loan payment calculator.
- Click Save & Close.
In the Financing table, you will then see your loan amount, with payments following later:
Note: if you have entered interest to calculate on your loan, then it will begin calculating as of the start of the loan, and accrue until you begin making payments. If your loan has deferred interest, read Entering a loan with deferred interest.