Businesses needs funds to operate, pay the salaries of its employees, pay rental for its premises and purchase goods and stocks. Thus, large or small companies need to acquire loans when the needs arise.
Taking out a loan is likewise necessary to build the credit score of the company or individual doing business. When a company or an individual acquire a loan, then, a serious monitoring of the business debt is necessary.
While it is necessary in your business operations and in the payment monitoring, business debt tracker is likewise necessary when audit and tax period comes.
Thus, if you are operating a business, you have to track the business debts your company has. This monitoring is necessary to ensure that you understand the financial condition of your company. If you loose track of your business debts and miss payments, your operations will suffer from debt collection agencies. You have to avoid it and ensure that you are operating a stable business with the help Business Debt Tracker.
You can download a Business Debt Tracker if you do not have a monitor on your own. You can find an Excel template for this which you can download easily. It is a simple Business Debt Tracker which you can mirror in your operations and monitoring of your business finance.
What does a Business Debt Tracker include?
o To whom your company indebted to? State the name of the person or organization you are indebted to. It can be a bank, a financial institution or any other lending institutions.
o Loan Amount – this is amount you borrowed for a specific lender.
o Loan Date, this is when you acquired your loan.
o The current balance of your loan. You have to update this every time you make a payment and thus diminish the balance of your specific loan.
o Interest rates – this is the rate of interest slapped on your loan. If this is your first loan, then you expect a higher interest rate as compared to loan you have acquired with a better credit score. Interest rates for good paying clients are often best as compared to loans acquired by low credit score borrower.
o Maturity Date – you have to be specific with this so you know if you are missing any payment or are already past maturity.
o Monthly payments – this is another column in the business debt tracker from Excel. This will tell you that you need to settle this amount to your creditor periodically.
o Collateral, if you have collateral on your loan, you have to put it in here. You have to know if missing payments will make you loose a certain item in your assets list.
o The template from Excel also has a column for current or past Due amount. You have to put an amount here especially if you have a past due payment. This has to prompt you that you need to settle such an amount immediately to avoid problems with your creditor.
The business debt tracker is a neat monitor which you will use to ensure that your business is paying its creditors on time. If this template is updated with no past due, then your business is stable because it is able to meet its honest obligations. If not, let this business debt tracker guide you in making sure you pay your loans in time.
A good credit standing will reward you with better interest rates and trust from other organizations as well.
Some large companies suffer from huge penalties due to missed payments. This is because they are unable to monitor their business debts well. Be a step ahead and use the business debt tracker for better business finance management.