A debt schedule is a table or list that shows the details of a borrower’s outstanding debt, including the creditor, the amount borrowed, the interest rate, the payment schedule, and the maturity date. It can also include information on any covenants or other terms associated with the debt. The debt schedule is used to evaluate and keep track of a borrower’s financial obligations and ensure they are being met promptly. It is also commonly used in financial modeling and analysis to evaluate borrowers’ ability to repay the debt and assess their creditworthiness.
Debt Schedule Template
A debt schedule template is a pre-designed table or spreadsheet that can be used to create a debt schedule. It typically includes columns for the creditor’s name, the amount borrowed, the interest rate, the payment schedule, the maturity date, and other relevant information.
A debt schedule template can be found online from various financial institutions, financial software providers, or personal finance websites. They can also be created using spreadsheet software such as Microsoft Excel or Google Sheets. The template can be modified to fit the borrower’s specific needs by adding or removing columns as needed.
Click the link below to download the debt schedule template;
Which Information is Included in a Debt Schedule?
A debt schedule typically includes the following information:
Creditor
The name of the lender or creditor that the borrower has borrowed from.
The amount borrowed
The total amount of money borrowed from the creditor.
Interest rate
The annual interest rate the borrower must pay on the debt.
Payment schedule
The schedule of payments that the borrower is required to make, including the due date and the amount due for each payment.
Maturity date
The debt is due to be paid in full.
Collateral or security
The assets are pledged as collateral for the loan.
Covenants
Any agreements or conditions that the borrower must abide by to keep the loan in good standing
Credit Rating
Credit rating of the borrower, if any.
Type of debt
Secured/Unsecured, revolving/term loan, etc
Remaining balance
The balance left on the loan is updated periodically.
This information is used to evaluate a borrower’s creditworthiness and ability to repay the debt and track the borrower’s financial obligations over time.
How to Fill Out a Debt Schedule?
Filling out a debt schedule typically involves the following steps:
Gather information
Collect all relevant information on your debts, including the creditors’ names, the amounts borrowed, the interest rates, and the payment schedules.
Create a table or spreadsheet
Use software such as Microsoft Excel or Google Sheets to create a table or spreadsheet that will serve your debt schedule.
Enter the creditor information
In the table’s first column, enter each creditor’s name.
Enter the amount borrowed
In the next column, enter the total amount borrowed from each creditor.
Enter the interest rate
In the next column, enter the annual interest rate for each debt.
Enter the payment schedule
In the next column, enter the payment schedule for each debt, including the due date and the amount due for each payment.
Enter the maturity date
In the next column, enter the date on which the debt is due to be paid in full.
Enter the collateral or security
Enter the assets pledged as collateral for the loan if any.
Enter the credit rating
Credit rating of the borrower, if any.
Enter the type of debt
Secured/Unsecured, revolving/term loan, etc
Update remaining balance
Update the remaining balance left on the loan periodically.
It is important to keep the debt schedule up-to-date and review it regularly to ensure that all the information is accurate and that payments are being made on time.
Who Should Fill Out a Debt Schedule?
A debt schedule is typically filled out by the borrower or the person responsible for repaying the debt. This could be an individual, a business, or any other entity that has taken on debt.
Individuals may use debt schedules to keep track of their debts, such as credit card balances, car loans, and mortgages. Businesses may use debt schedules to track the debts they have taken on to finance operations, such as loans from banks or bond issuances.
A debt schedule is also used by financial institutions, such as banks, credit unions, and other lending institutions, to evaluate a borrower’s creditworthiness and ability to repay the debt. They also use it to track the borrower’s financial obligations over time and ensure they are being met.
Additionally, debt schedule is also used by financial analysts, accountants, and other professionals who need to evaluate a company’s financial performance and health.
It’s also important to remember that a debt schedule is a useful tool for budgeting and debt management and can be filled out by any person who wants to keep track of their debt obligations.
Debt; Definition and Examples
Debt refers to the amount of money an individual or organization owes to creditors. It can be in the form of loans, bonds, mortgages, credit card balances, or any other financial obligation that requires the borrower to repay the amount borrowed, plus interest, over a certain period of time. Debt is usually used to finance a wide range of activities, such as starting a business, purchasing a home, or funding personal expenses.
There are different types of debt, including secured and unsecured debt. Secured debt is usually backed by some form of asset, such as a house or car, the lender can seize that if the borrower defaults on the loan. Unsecured debt is not backed by any asset or collateral and is generally considered riskier for the lender. Examples of unsecured debt include signature loans, credit card debt, and personal loans.
Debt can also be classified as short-term or long-term. Short-term debt is generally defined as a debt due within one year, while long-term debt is due in more than one year.
While debt can be used to finance important investments and opportunities, it’s also important to manage it responsibly, as excessive debt can lead to financial difficulties.
What is a Collateral?
Collateral is an asset that is pledged as security for the repayment of a loan. Lenders use it to reduce the risk of lending money to a borrower. If the borrower cannot repay the loan, the lender has the right to take over or seize the collateral and sell it to recover the loaned amount. Collateral can take many forms, such as real estate, vehicles, equipment, investments, or other valuable assets.
When a borrower applies for a loan, the lender will usually require some form of collateral, such as a house mortgage or a car lien. This assures the lender that they can recover their money in the event of a default.
It’s important to note that not all debts require collateral; unsecured debts are not backed by any assets and are considered riskier for the lender. These types of debt are usually extended based on the borrower’s credit history, income, and credit score.
Also the value and quality of the collateral will affect the terms of the loan, such as interest rate, loan-to-value ratio, and the repayment period.
Documents Required For a Business Loan Application
Banks and other lenders will typically require the following documents to evaluate the creditworthiness and financial health of the borrower when applying for a business loan;
- Business plan: A detailed plan outlines the business’s goals, strategies, and financial projections.
- Business financial statements: Financial statements, such as balance sheets, income statements, and cash flow statements.
- Personal Financial Statement: PFS provides information on the borrower’s personal and business finances.
- Tax returns: Personal and business tax returns for the past several years.
- Debt Schedule: Detail table that documents existing debt (loans) collateral pledged to secure the loan.
- Bank statements: Bank statements of the business for the past 6 to 12 months.
- Business registration documents: Articles of incorporation, partnership agreements, etc.
- Insurance documents: Business insurance policy documents to safeguard the lender’s interests.
It’s always a good idea to check with the lender to find out exactly what documents they need.
