Loans

Existing loans

If you have more than one existing short or long term loan, calculate the averages and enter those figures.

New short term and long term loans

You can enter 3 different short term and long term loans. The principal payments and the interest payments will be entered into the cash flow and income statement worksheets.

If the initial payment starts 1 month after receipt of the funds, you should select YES from the dropdown provided for each loan. The principal payments and the interest payments will be entered into the cash flow and income statement worksheets starting one month after receipt of the funds. If you select NO, the payments will start in the same month you receive the funds.

Amortization

If you amortize a loan (this is only possible for NEW LOANS), click on the AMORTIZE button to go to the amortization tables. The tables are used to calculate the loan schedules and the data is then inserted into other worksheets where appropriate. Enter any payment into the Amortization rows in the month where the payment is actually done.

If you do wish to include an amortization of an existing loan (i.e. it existed before the first year of planning), enter it as a New Loan instead and start it in the first month of the first year. Use the amortization row in the Loans worksheet to enter the amortization as you would do for a new loan.

Loans > 5 years

Even though the Loans worksheet has a 5 year maximum term (details are only calculated and entered into the planning for up to 5 years), enter any long term loan (f.e. a mortgage of 20 years) with the correct number of months (f.e. 240 months for a 20 year mortgage). Only the first 5 years of the loan schedule are calculated and used in your planning.

Deferred loans

Enter the details of any deferred loan in this table whereby the interest rate can be 0% or more depending on the loan agreement. F.e. a shareholder may provide the loan without expecting interest and amortization payments until the business is able to do so.

Manage deferred loans

To amortize a loan, click on the MANAGE button to go to the amortization tables.

Payments: enter any payments (principal or interest) in the Deferred Loan Schedule when actually paid.

Flexible loans

Flexible loans can be handy where you wish to enter the loan amount, the amortization and interest payments as is needed. The interest payments will be booked in the Income statement the same month they are paid.