A Debt Schedule is needed for each affiliate business so the funder can assess credit repayment across not only your primary business but all other businesses that are owned by the guarantor where you own 20% or more equity. This document lists all the debts of these businesses, helping funders understand the total liabilities that could affect your ability to repay a loan. It ensures they have a full picture of your financial obligations.
The Debt Schedule should be prepared by the affiliate business or its accountant.
This document should include:
Lender names: Who the debts are owed to.
Balances: The remaining amount of each debt.
Interest rates: The interest rates for each debt.
Payment terms: How and when each debt is to be paid.
The Debt Schedule helps funders assess the financial health of their affiliate businesses before approving a loan.