Entering a loan with a custom payment schedule

Adding a New Loan:

Use this method for loans with a custom repayment schedule that you'll receive during your forecast period. You can create the loan using automatic forecasting or set it up yourself using manual forecasting.

Automatic forecasting:

1

Under the Forecast tab of the Finance Forecasting module, click on the Funding tab.

You will see a setup window where you can describe how your custom loan is structured.

2

Enter the loan details in plain text. Include information such as the loan amount, interest rate, date you'll receive the funds, and your custom repayment schedule.

For example, mention if you plan to make quarterly repayments, irregular payments, or a balloon payment at the end of the loan.

Click on Draft my funding.

3

Upmetrics will draft the funding source based on the information you entered.

Review the suggested loan and its assumptions. If required, click on the Edit icon to make changes.

4

Once the details look correct, click on Add these sources.

The funding source will be added to your forecast, where you can review or update its assumptions whenever needed.

TIP: Include the loan amount, interest rate, receiving date, repayment frequency, and any balloon or irregular payments in your description. Providing more detail helps Upmetrics create a better starting point for your custom loan.

Manual forecasting:

1

If you prefer to set up the loan manually, click on I'd rather set it up myself from the initial funding setup window.

2

In the Set up your funding groups window, enter a funding group name and a source name for the loan.

Click on Create these.

3

Upmetrics will create the funding source. Locate the newly created loan under the Funding tab.

4

Click on Fill it in to open the assumption form.

5

Enter a name for the loan and select the funding type as Other Financing (Borrowed).

Enable the applicable toggle if the loan was established before your plan started.

6

Enter the loan amount and select the date on which you'll receive the funds.

Enter the annual interest rate and select the date from which interest should begin calculating.

7

Indicate whether you expect to repay the financing within 12 months, and click on Save.

TIP: Learn more about short-term and long-term debt. Click here.

8

Amount Received: Enter the amount of money you'll receive and when you'll receive it. You can enter the entire loan in one period or enter amounts across multiple periods, depending on how your loan is structured.

Upmetrics will calculate the applicable interest and other loan values based on the assumptions you've entered.

9

Amount Repaid: Enter the amount you plan to repay in each applicable forecast period.

This allows you to create a custom repayment schedule. For example, you can enter repayments only in the months when quarterly payments are due or enter a larger balloon payment in the final repayment period.

10

Your updates to the forecast are saved automatically. Once you've entered the custom repayment schedule, close the overlay.

The loan and its payments will be displayed in the Financing table.

Where does this entry appear in the financial statements?

When you enter a loan, only the interest portion will appear in your Profit and Loss statement. This is because interest represents the financing cost incurred by your business.

Loans will appear on one or two lines of the Balance Sheet, depending on their repayment period. A loan that will be repaid within 12 months appears as Short-Term Debt. A loan extending beyond 12 months may also be shown as Long-Term Debt.

TIP: Learn more about short-term and long-term debt, click here.

In the Cash Flow statement, funds received from the loan will be reflected under the Loan Received section.