Loan draw and debt repayment forecast
Loan draw and debt repayment affect cash, liabilities, interest expense, and sometimes covenant review. A linked PL BS CF forecast helps separate borrowing cash inflow from repayment outflow and interest expense.
1) Separate draw, repayment, and interest
- Loan draw increases cash and debt balance.
- Debt repayment reduces cash and debt balance.
- Interest expense affects PL and cash timing.
2) Review the balance sheet movement
After adding debt transactions, review ending debt balance, cash movement, and the Checks tab. A common error is treating principal repayment as an expense instead of balance sheet movement.
How do I forecast loan repayment?
Enter principal repayment as debt payment, keep interest as interest expense, then review cash, debt balance, and PL impact separately.