Types of business loans
Standard business loan
You receive a fixed amount (principal) that you repay in monthly installments with interest.
Credit line
You have an approved limit that you draw on when needed. You pay interest only on the drawn amount.
Overdraft
Linked to your bank account — you can go negative up to a set limit.
Why tracking them matters
- You know exactly how much you owe
- You plan your cash flow around the repayments
- You see how much interest you have paid in total
- You can judge whether to refinance
What to track
- Outstanding principal
- Principal and interest paid
- Next payment date
- Loan end date
- Interest rate
Finsense loan management
Finsense supports all three types of loans. For a standard loan, the principal is recorded in the receiving account and the liability in a separate loan account. The payment history shows a breakdown of principal and interest for each installment.
