Keep track of business loans and understand how repayments and interest affect your finances.
Savetime Calculator POS allows you to record business loans separately from your everyday sales, expenses, and stock transactions. This makes it easier to keep track of what your business owes and monitor loan repayments over time.
When your business takes a loan, you can record the loan details so the amount is properly reflected in your financial records.
You can capture important information such as:
This gives you a clear record of your business borrowing instead of relying on notebooks or separate calculations.
As you repay the loan, the repayments can be recorded against the outstanding balance. This helps you see how much has already been paid and how much remains.
For example, if your business borrows KSh 100,000 and the principal is to be repaid over 10 months, the principal repayment would be KSh 10,000 per month.
If the loan also carries KSh 30,000 in interest, the total amount to be repaid would be KSh 130,000.
Keeping the principal and interest clearly identified is important because they affect your financial records differently.
Loan interest is treated as a business expense. This means the interest paid on a business loan can be reflected in your expense records and therefore affects the business’s profit.
The loan principal itself is not a business expense. It represents money the business has received and must repay.
This distinction helps your financial reports give you a more meaningful picture of your business performance.
Loan management helps you keep track of your outstanding borrowing alongside other financial information.
This is particularly useful when reviewing your Balance Sheet, where loans form part of the business’s liabilities. Instead of looking only at sales and cash in the business, you can also understand how much the business still owes.
Knowing how much your business owes is just as important as knowing how much it owns.
With loan information properly recorded, you can:
Loan management works together with the other financial tools in Savetime Calculator POS to give you a more complete view of your business, not just how much you sell, but how the money your business borrows and repays affects its financial position.