Entering a Loan with Deferred Interest

Entering a Deferred Interest-Free Loan:

1

Under the working capital tab of the financial forecasting tool, Click on the Funding tab, and then click on Add Funding option:

TIP: Moving finance items from one group to another is hassle-free. For a detailed walkthrough, check out our help guide here.

2

Enter a name for the loan(borrowed on interest), select the funding type as Other Financing(Borrowed), and then click on Next:

3

Enter the loan amount, and annual interest rate If your loan will have interest calculated on it, enter that percentage, and add the received date.

4

Indicate whether you'll pay this financing back within 12 months and click on Save.

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.

5

Amount Received: Enter the amount of money you'll receive and when you'll receive it. You can enter a single amount in a single month or amounts in multiple months, depending on how your loan is structured, system will automatically calculate interest on the loan and other parameters using the standard loan formula:

6

Amount Repaid: Enter the amount you plan to pay back each month or year against the balance, The final overlay represents your payment schedule. Enter the interest-free payments you'll be making in the months in which you'll make them. Then, in the month following the last interest-free payment, enter the balance of the loan to be paid. (This may seem strange, but we'll represent this balance again in the second loan entry.)

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.

7

Whatever updates you make in the excel sheet are set on autosave mode. Close the overlay.

Adding Portion with Interest

1

Under the working capital tab of financial forecasting tool, Click on the Funding tab, and then click Add Funding option:

2

Enter a name for the loan, select funding type as Loan, and then click on Next:

3

Enter the loan amount, specify the loan term in months, select the date you'll receive the funds, input the interest rate as a percentage, and choose the date when the interest starts.

4

Choose a repayment method for the loan (EMI), specify the amount you'll repay each month, and select the starting date for these repayments. Click on  Save.

TIP: For detailed instructions on adding loans with their repayment terms, Click here.