Entering a Loan with Deferred Interest

Entering a Deferred Interest-Free Loan:

1

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

2

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

3

Click Next.

4

Enter the annual interest rate(If your loan will have interest calculated on it, enter that percentage. If your loan will have no interest, enter a zero) and also indicate whether you'll pay this financing back within 12 months:

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

Click Save.

6

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, Upmetrics will automatically calculate interest on the loan and other parameters using the standard loan formula:

7

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.

8

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 Button:

2

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

3

Enter a loan amount that is the portion of the loan on which you'll pay interest and also enter the interest you'll pay:

4

Assign a start date for this portion of the loan. It should be a month in which the loan begins to have interest applied -- which is usually the month after the last interest-deferred payment.  and the length of the loan:

5

Click Save & Close