A business debt schedule is a document that lists a company’s existing debt obligations, including providers, balances, payment or remittance amounts, terms, and due dates. It helps organize current obligations before seeking new financing.
It’s important for the efficiency of your business to understand your income as well as your outgoing expenses. Since debt is typically paid back over time, having a debt schedule template to organize what bills need to be paid and when can go a long way in decreasing debt, improving profit, and making your day less stressful.
Everyone Needs A Schedule Of Debt
Avoid the stress of worrying about your long-term debts by creating and maintaining a simple debt schedule that takes the guesswork out of the equation. You’ll be able to make informed decisions for business growth, daily improvements, and payment strategies.
Using a template is a great way to get started and understand the details of each debt. Some common types of debt that most small businesses carry include:
- Loans and leases
- Mortgage
- Miscellaneous payments
- Supplier payments
Why Are You Borrowing Money?Read this first and save yourself from debt you don’t need. |
What Is A Business Debt Schedule?
Just like it sounds, it’s a schedule of debt that clearly defines who is owed, how much is owed, and when the debts need to be paid. Typically regular expenses such as short-term accounts payable are not included in a debt schedule.
Gain An Instant, 360-Degree Overview
As a business owner or CFO, it’s important for you to be able to quickly assess your company’s current expenditures and profits for decision-making.
Having a list available for when you need a new line of credit, to repay current lenders, negotiate with a creditor, or find out how much interest you’re paying is extremely valuable in saving you time.
Benefits Of A Debt Schedule
Organization is the leading benefit of having a debt schedule, and saving valuable time throughout the day is a benefit of using a business debt schedule form. Additionally, having a debt schedule will help you analyze your cash flow by connecting your income statement, balance sheet, and cash flow statement.
Having a schedule can ensure you:
- Never miss a payment
Time moves quickly; don’t risk missing a payment and potentially harming your credit.
- Always know your debt
Easily set sales goals and make predictions when you can easily access your monthly debt with a business debt schedule.
- Can easily monitor your business financial health
Gain a better understanding of where to direct your financial debt.
- Know if you can take on more debt
Improve your business, reach your goals, and ensure your income statement can support a new line of credit or small business loan.
- Provide accurate information to potential lenders
Having a debt schedule readily available for a new lender could prove invaluable. Lenders will often ask for such information in addition to a balance sheet; having one already created will save you time and money in the future.
Keeping Tabs On Your Business’s Performance:
Use the debt schedule to show current obligations clearly
A debt schedule gives financing providers a clearer view of existing obligations and available cash flow. It should be kept current and include loan payments, equipment obligations, credit lines, and any MCA remittances where applicable. Keeping this document updated can make financing conversations more efficient.
A complete debt schedule typically includes: provider name, original amount borrowed, current balance, payment or remittance amount, frequency, maturity or end date, collateral if relevant, and account status. Reviewing this alongside a DSCR calculation can help show debt capacity before applying for new financing.
For businesses ready to review financing options, see business loan requirements for a full documentation checklist, or explore business financing options based on the use of funds.
How To Make A Business Debt Schedule (Template Below)
There’s no reason to choose expensive software or scheduling applications to create a debt schedule template. Microsoft Excel or a similar program like Google Sheets will work just fine and give you the added benefit of storing your schedule in the cloud.
Take care when you’re creating your formulas correctly to prevent calculation errors from creeping in. You can also use an online debt repayment calculator for help.
Some details a schedule of debt should include are:
- Creditor name
- Date debt is due
- Interest rate
- Original debt amount
- Current balance
- Monthly payment
- Maturity date
- Collateral
- Miscellaneous notes
Downloadable Business Debt Schedule Form
Creating your own schedule will give you the flexibility and customization you may need for your business. However, to save time, our easy to use debt schedule includes:
- Line items
- Formulas
- Easy to follow instructions
Download the Debt Schedule Template
Using The Debt Schedule Template
- Replace the sample name, address, phone number, etc., with your own information
- At the bottom of the spreadsheet, you’ll see a tab called “MONTH ONE” rename this to the current month
- Fill in the information for your creditors, dates, loan amounts, interest expense, etc., until the form is filled out with your company’s information
- Copy the tabs for subsequent months until the end of the year. Each year you can recreate the spreadsheet for easy organization
Ensure your financial documents are readily available with the information you require at a moment’s notice when you use Credibly’s easy-to-understand, customizable debt schedule template.
Frequently Asked Questions about business debt schedules
What is a business debt schedule?
It is a document that lists a business’s current debt obligations, balances, providers, due dates, and payment or remittance amounts.
Why do financing providers ask for a debt schedule?
It helps show existing obligations and how those obligations may affect cash flow and financing capacity.
What should be included in a debt schedule?
Include the provider, original amount, current balance, payment or remittance amount, frequency, maturity date, collateral if relevant, and account status.
How does a debt schedule relate to DSCR?
A debt schedule helps identify debt obligations that may be used when reviewing debt service coverage and cash-flow capacity.
