Use Loans when you want principal, interest, and repayment to flow automatically from debt terms.
Create the loan
Add a loan from Schedules > Loans. The same modal holds the loan header, an Initial Loan Term, and the required account allocations.
The create flow asks for:
- Name
- Category
- Type
- Principal
- Term Start Period
- Term End Period
- Annual Rate
- Payment Type
- optional Payment Amount
For the rate field, enter a human percentage such as 5 for 5%.
Add or edit loan terms
Add another term when the debt changes meaningfully:
- a new rate
- a different payment structure
- a refinancing period
- an interest-only phase followed by amortization
Pick the right payment type
- Fully Amortizing when the payment should reduce principal over the term
- Interest Only when principal should stay flat during that phase
- No Payment when the balance should accrue without scheduled payments
- Balloon when the balance should remain largely outstanding until the end
Use a second term instead of making one term cover two different structures.
What flows out of Loans
Loans can drive:
- interest expense
- liability balances
- current maturities if mapped
- cash repayment timing