Debt Schedule Excel Template
Posted by eFinancial Models on January 11th, 2021
Most businesses or companies have their sources of financing, most particularly debt financing. For some reason, we sometimes tend to neglect these debts and may impact our credit standing and business prospects. An excellent way to keep a precise and comprehensive record of your business debt is to maintain a debt schedule, which summarizes the pertinent information about your outstanding obligations.
What is Debt Schedule?
A debt schedule lists all the debt a business has in a schedule based on maturity. This allows you to review, analyze, and plan your repayment. It also helps you plan strategically – when and how are you going to pay off your debt or whether you acquire new debt. Additionally, it will quickly provide long-term projections to investors and creditors.
Debt Schedule is mostly helpful for the construction of cash flow analysis. Interest expense shown in the schedule is incorporated into the income statement. The closing balance of the debt is listed on the balance sheet, and the principal repayments impact the cash flow statement. It is one of the supporting schedules that linked the three financial statements.
Components of a Debt Schedule
Debt schedule is mostly built in an Excel template that outlines all the debt and corresponding interest along with other components, including;
- Creditor/Lender
- Date of the Debt
- Maturity Date
- Opening Balance (beginning of the period)
- Additions
- Interest
- Repayments
- Closing Balance (end of the period)
Unlike other financial models, this applicable in most businesses as it follows the same pattern. There are plenty of debt schedule available here if you need one.
Why does a business need a debt schedule?
Debt Schedule allows you to estimate the total amount of obligations a company needs to settle once a debt mature. It gives you the ability to see each debt's maturity and the likelihood of acquiring or refinancing the debt through a different financing institution when the interest rate declines. The debt schedule report can be used to negotiate a new line of credit for the company. Creditors will use the report and consider the risk and reward before awarding new credit.
Conclusion: Debt schedule helps companies make an informed decision
Debt Schedule lists the debts that the company owes, including term loans, debentures, cash credit, etc. Companies prepare this schedule to know the exact amount of their liabilities and manage their cash flow to prevent financial crisis and facilitate better debt management.
