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?

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  • 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.

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    • dakinemaui I am a bit confused. I create a liability account what do I set the balance too of the liability account? I havent made the deposit yet.

       

      From my understanding I should write a check to the business for $1,000 deposit it into the checking amount, and categorize it as to be budgeted. Then I should create a liability account with a balance of $1,000. when I pay it back the I can categorize the payments as transfer to the liability account.

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  • 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.

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