Enter loans into working capital forecast, The system will automatically calculates monthly Interests, Amounts repaid(EMI), Short term Debt and Long Term Debt values.
Make sure not to add your loan payments as a separate expense in Operating expense page, If you did that already, go delete that expense value from there. All you need to do with loans is tell us about them here, and we’ll take care of the payback details.
Here are the steps to enter loan amounts and terms:
Click the ‘Add Funding’ button
Type: Select ‘Loan’ type funding option
Funding Amount: Enter loan amount, interest percentage and loan term(Start date and length)
Review Debt Funding amounts in various financial statements:
Read the entries reflects in all three main financial statements Profit & Loss statement, Balance Sheet and Cash-flow Statement as follow:
Where does the Debt Funding appear in Profit & Loss statement?
The interest you pay would be considered as an expense in income statement, You can see the interest expenses under additional expense section as follow:
Where does the Debt Funding appear in Balance Sheet?
In the Balance Sheet, it appears under the liability section, and the value shown as a short term debt and long term debt as follow, As the investment has to pay back to the investor as a interest it would be considered as a liability.
Where does the Debt Funding appear in Cash-flow Statement?
In the Cash Flow, it appears under the section ‘Net Cash from Financing’,
This would be as a change in available cash through investment received.