Loans
The Loans module forecasts the cash flow impact of your loan portfolio. For each loan, you define a repayment schedule and the module calculates monthly principal repayments, interest expense, and outstanding balance through your forecast period.
This is a scenario-level standalone module — each scenario can model a different financing structure.
When to use Loans
Use this module when:
- You have existing loans whose repayment schedule you want in your Cash Flow forecast
- You're planning new borrowing (drawdown date, amount, terms)
- You want interest expense to appear automatically on your P&L without manual entry
- You're linking loan financing to specific fixed asset acquisitions (see Fixed Assets module)
Creating the module
- In your Scenario, click Add a budget
- Choose Loans
- Follow the setup wizard (4 steps)
Step 1 — Introduction
Set the forecast period. Choose whether to import existing loan data from a connected integration if your accounting software tracks loan schedules.
Step 2 — Loans Overview
Add and manage individual loans. For each loan:
| Field | What it defines |
|---|---|
| Loan name | E.g. "Rabobank Term Loan 2024", "Lease – BMW 320" |
| Principal amount | Original loan amount |
| Outstanding balance | Current remaining balance (if an existing loan) |
| Interest rate | Annual interest rate (Monitr converts to monthly) |
| Interest type | Fixed or variable |
| Drawdown date | When loan proceeds are received (cash inflow in financing activities) |
| Repayment start date | First repayment date |
| Repayment frequency | Monthly, quarterly, annually |
| Loan end date / term | When fully repaid |
Loan schedule
Once you've entered loan details, the module displays a full amortisation schedule: principal and interest per period, and the remaining balance over time. Review this to verify the schedule matches your actual loan agreement.
Fixed Asset linkage
If the loan finances a specific asset purchase, link it to an asset in the Fixed Assets module:
- Set the financing percentage — the portion of the asset cost covered by this loan
- The module coordinates the asset acquisition cash flow with the loan drawdown
This gives you a complete picture: asset acquired → loan drawdown received → monthly repayments.
Step 3 — Mapping
Assign budget accounts for each cash flow type:
| Entry type | What it maps |
|---|---|
| Principal repayment | Cash outflow in financing activities (Balance Sheet: reduces loan liability) |
| Interest expense | Finance cost on the P&L |
| Interest reservation | Accrued interest (if interest is accrued before payment) |
| Loan drawdown | Cash inflow when proceeds are received |
Step 4 — Result
Review the monthly forecast showing:
- Outstanding balance per loan over time
- Monthly interest expense (P&L impact)
- Monthly principal repayment (Cash Flow impact)
- Total debt service (principal + interest combined)
Output in reports
- P&L → interest expense on the finance cost line
- Balance Sheet → loan balance (split between current portion — due within 12 months — and non-current)
- Cash Flow → loan drawdown as financing inflow; principal repayments as financing outflows; interest as operating or financing outflow depending on your accounting policy
New borrowings in the forecast
To model planned future borrowing, add a new loan entry with a future drawdown date. Monitr treats the drawdown as a cash inflow in the forecast and begins the repayment schedule from the configured start date.
The Loans module can also model lease liabilities (IFRS 16 / right-of-use assets) by treating the lease as a loan — drawdown = asset recognised, repayments = lease payments, interest = unwinding of discount.