Cash flow software with loan options and functionality

Cash flow projection software with loan payments

Looking at most of the answers to Google searches for cash flow software with loan options, these seem to deal with cash flow forecast templates and guides to cash flow forecasting and loan applications. But I don’t think that’s what you were searching for. What I think you are looking for is cash flow software that includes loan options. Let’s take a look…

Cash flow software with loan options: Cash flow software with loans will include functionality for loan advances during the forecast period as well as the ability to bring forward outstanding loans at the start of the period. All good software should accommodate all types of loan facility with functionality to adjust interest rates and loan terms.

If I’m right in my opening statement to this article, then you are looking for cash flow software that also deals with loans facilities. Rather than how to create your own spreadsheet template from scratch.

How cash flow software includes loan facilities

Where cash flow software includes loan facilities, the figures for the loan advance and repayment will be dealt with as follows in your forecast reports.

• The loan advance should be included as an income source on the cash flow report. This is to be included in the month you expect the loan draw down to happen.
• The loan repayments will be included as outgoings on the cash flow forecast. But this is only once the loan has been included as drawn down.
• These loan repayments can include either equal monthly repayments or lump payments, depending on the type of loan advance.
• On the projected balance sheets for the periods post loan draw down, the closing liability of the loan will be included on the projected balance sheet reports.
• The loan liability should be split between amounts due within one year. Plus under amounts due after more than one year on the balance sheet where appropriate.
• The interest charged on the loan will be included in each of the months following draw down in the forecast profit and loss (or income statement).
• The loan advance will be included on the forecast cash flow statement. This will be under ‘Cash flow in from investment activities‘.
• The repayment of borrowings will be included on the cash flow statement. This will be under ‘Net cash used in financing activities‘.
• The loan interest will be included under ‘Cash flows from operating activities‘.

Types of loans included in cash flow forecasting software

Cash flow software should include the various forms of bank and other loans. Here’s a few examples, of the functionality required to allow for the different loan types.

• Differing loan advance amounts that could be drawn down in any month of the forecast period.
• Loans which have the facility for multiple draw downs.
• The ability to charge the interest to the loan or directly to the cash flow.
• The ability to enter specific interest rates.
• To include loan lump payments.
• Varying loan term periods.
• Which month the loan repayments commence or if the loan has no monthly repayments at all.
• Loans with a final lump payment.
• Types of loan either bank loans or hire purchase etc.

Preparing your own cash flow forecast template

Of course it’s possible for you to create your own cash flow forecast template, if you have the time and inclination. Having cash flow forecasting software with built in loan functionality, along with all the other cash flow functions you’d expect, will save time and headaches. However, unless you can find free cash flow forecast software, I’m afraid you’re going to need to invest in this software.

However, I understand you may wish to prepare your own cash flow forecast instead using a spreadsheet like Excel, Google Sheets or LibreOffice Calc.

If you do prepare your own cash flow forecast; it’s important to understand the interaction between the cash flow forecast itself. But also with the how the loan liability appears on your projected balance sheet. Plus the interest to be included on the forecast profit and loss.

What goes into a cash flow forecast?

The essential elements of what goes into a cash flow forecast include all projected income sources, together with all expected costs predicted to happen during the forecast period.

Cash flow forecasts can cover just a 12 month period. But if the forecasts are for a bank, these tend to be for a 3 year forecast period.

I hope you enjoyed this article about cash flow software with loan options and functionality

I hope this article has helped in someway to solving your question about cash flow software with loan options and functionality. If you have any further questions, please pop them in the comments below.

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