Question 1

What specific columns must be included in a debt schedule?

Accepted Answer

A business debt schedule should include the name of the lender, the original loan amount, the current outstanding balance, the interest rate, the monthly payment, and the maturity date. You should also note if the debt is secured by specific collateral, like equipment or real estate. Keeping these details updated monthly allows you to provide an instant financial snapshot to potential lenders or investors.

Question 2

How does a debt schedule affect my chances of loan approval?

Accepted Answer

Lenders use the debt schedule to calculate your Debt Service Coverage Ratio (DSCR), typically looking for a ratio of 1.25x or higher. They compare your net operating income against the total annual debt payments listed on your schedule. If your existing debt consumes too much of your revenue, lenders may offer smaller loan amounts or higher interest rates to offset the perceived risk.

Question 3

What is the difference between a debt schedule and a balance sheet?

Accepted Answer

While a debt schedule tracks the specific details of loans (interest rates, terms, and lenders), a balance sheet provides a broader view of all assets and liabilities at a single point in time. The debt schedule acts as a supporting document that 'breaks out' the entries found in the 'Long-term Debt' section of your balance sheet. This granular detail is what underwriters specifically need to verify cash flow stability.

Question 4

What happens if I forget to list a small loan on the schedule?

Accepted Answer

Missing a small equipment lease or a minor revolving line of credit can lead a lender to believe you are intentionally hiding obligations, which may result in an immediate denial. Underwriters cross-reference your debt schedule with your credit report and bank statements. Significant discrepancies suggest poor record-keeping or financial distress, both of which are red flags for traditional and alternative funders.

Question 5

Should I include Merchant Cash Advances on my debt schedule?

Accepted Answer

Yes, Merchant Cash Advances (MCAs) must be included, though they are technically structured as sales of future receivables rather than traditional loans. You should list the current balance, the daily or weekly payment amount, and the remaining 'factor' amount. Since MCAs involve high-frequency payments, they heavily impact your daily cash flow and are vital for an accurate DSCR calculation.

Question 6

How often should a small business update its debt schedule?

Accepted Answer

You should update your debt schedule at the end of every month or at minimum every quarter. This ensures that the reflected balances are accurate and that your interest-to-principal ratios are current. Having a 'ready-to-go' debt schedule can shave days off the underwriting process when you need to act quickly on a new funding opportunity.

Question 7

What do lenders consider a 'healthy' debt profile on a schedule?

Accepted Answer

Lenders look for 'staggered' maturity dates, meaning all your loans don't come due at the exact same time. They also prefer to see a mix of debt types, such as long-term SBA loans combined with short-term revolving lines. If a lender sees multiple high-interest, short-term positions (known as 'stacking'), they may require debt consolidation before approving further capital.

Question 8

What if my debt schedule shows I have too much debt to qualify?

Accepted Answer

If your debt schedule shows a DSCR below 1.0, it means your business is not generating enough cash to cover existing payments, making new debt unlikely. In this scenario, you should look for debt consolidation options or revenue-based financing that fluctuates with your sales. Reducing high-frequency payments (like daily ACH draws) is often the first step to improving the health of your debt schedule.

Requirement	Typical standard
Annual Revenue	$150,000+ per year
Credit Score (FICO)	600+ (varies by product)
Time in Business	6 months to 2 years+
Debt Service Coverage Ratio (DSCR)	1.2x or higher preferred
Max Debt-to-Income Ratio	Typically 40% - 50% max
Documentation Needs	Schedule, Tax Returns, 4 months Bank Statements

Business Debt Schedule: Template + What Lenders Want

Key takeaways

Who this is for

What you need to qualify

Best funding options

Debt Consolidation

SBA 7(a) Loans

Invoice Factoring

Business Line of Credit

When this makes sense

When to be careful

Simplify Your Debt Schedule Today

Common questions

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