Entering a line of credit

A Line of Credit gives your business access to funds up to a set credit limit. You can draw money against this limit when needed and repay the outstanding balance over time.

In Upmetrics, you can describe your Line of Credit in plain text and let AI organize the details in your forecast. If you prefer, you can also create the Line of Credit manually and enter all the assumptions yourself.

Adding a Line of Credit

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 Line of Credit is structured.

2

Enter your Line of Credit details in plain text. You can include information such as the amount you plan to borrow, the credit limit, interest rate, and repayment terms.

Click on Draft my funding to continue.

3

Upmetrics will organize the information and suggest the appropriate funding source for your forecast.

Review the suggested Line of Credit. If you need to make changes, click on the Edit icon beside the funding source.

4

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

The Line of Credit will be added to the Funding section of your forecast, where you can review or update it whenever needed.

TIP: Include details such as the credit limit, interest rate, starting balance, and repayment expectations in your description. Providing more information helps Upmetrics create a better starting point for your Line of Credit.

Setting up a Line of Credit manually

If you prefer to enter the Line of Credit details yourself instead of using the AI-assisted setup, you can create the funding group and source manually.

1

On the initial Line of Credit setup window, click on I'd rather set it up myself.

2

The Set up your funding groups window will open. Enter a name for the funding group and enter Line of Credit as the source name.

If needed, you can use Add another source to include additional funding sources within the same group.

Click on Create these when you are ready.

3

Upmetrics will create the funding group and the Line of Credit source in your forecast.

Locate the newly created Line of Credit source under the Funding tab.

4

Click on Fill it in, to enter its forecast assumptions.

5

Confirm the funding name and select the funding type as Line of Credit.

6

Toggle the switch if the Line of Credit existed before the plan started, and enter the credit limit available to your business.

7

Enter the starting balance on the Line of Credit as of the beginning of your forecast, if applicable.

Enter the annual interest rate, and then click on Save.

8

Enter the amount that you plan to pay back in each forecast period.

TIP: You can return to the Funding tab at any time to update your Line of Credit assumptions as your financing plans change.

Where does this entry appear in the financial statements?

Similar to a Loan entry, only the interest portion of your Line of Credit appears in the Profit and Loss statement. Interest is the financing cost your business incurs for using the Line of Credit.

Because you can both use your Line of Credit and make payments toward it during the same period, the Balance Sheet calculates the remaining outstanding debt. This amount is shown under Current Liabilities as Short-Term Debt.

In the Cash Flow statement, amounts drawn from your Line of Credit are reflected under the Loan Received section.

Once your Line of Credit is set up, Upmetrics will include it in your financial forecast based on the assumptions you entered. You can edit these assumptions from the Funding tab whenever required.