Personal Loan to a business
I have two budgets one for my personal life and one for a business. I need cash in my business right now. I am looking to make a deposit to the business and pay it back over the course of the year. I know what do on the personal budget side. But what do I do on the business side?
Do I record the deposit as "To be budgeted" and create a liability to track the payback. or Do I create a category with a goal by date and amount?
Create a liability/tracking account to track the balance and do a transfer from that account categorized as TBB. (This results in a negative account balance that will gradually rise toward $0 as you make payments.)
Create a category to budget for the payments, and set a Goal to help you budget if you like. Record your payments as categorized transfers to the liability account.Reply
If your business is in a need of immediate cash flow then contact a commercial financing corporation, they would help you in getting your current requirement full filled. My uncle was in the same situation a year ago, he consulted Prestige Capital Corporation who provides factoring services to new business. Such corporations act as financial consultation.Reply