Loans
Track a business loan so each payment is split into deductible interest and the principal you paid down.
Add a loan
Go to Settings, then Banks & accounts, and under Long-term loans choose + Add Loan. Fill in:
- Loan name, and the lender if you like.
- Original principal, APR (%), Term (months), Monthly payment, and Start date.
- Linked account (optional): the account the payments come out of. If you set it, only payments from that account are matched.
The loan gets its own account in your books, and its balance goes down as payments are matched. When you add it, CORE Books AI looks back through past transactions and splits the payments it recognizes.
How a payment is recognized
- It comes in from a connected bank. Payments you import or enter by hand are not matched.
- It is close to your monthly payment, around the usual payment day, and on or after the start date.
- One payment per loan per month.
Each matched payment is split: the interest is an expense, and the rest pays down the loan's balance, which is not an expense.
Early in a long loan most of each payment is interest, so the balance falls slowly at first. That is how loans work.
Archive a loan
When a loan is paid off or no longer needed, archive it from the list. Its payment history stays in your books and it stops matching new payments.
On your phone
Loans are set up on the web.