What this form is for
Banks and SBA lenders require this schedule to see every dollar your business owes before approving new credit. You will list each loan, line of credit, equipment lease, and note payable with balances, terms, and collateral so the lender can calculate your total debt service and verify there are no hidden liens.
Before you start
- Pull your most recent statements for every business loan, line of credit, equipment lease, vehicle loan, and merchant cash advance.
- Gather your original loan agreements or promissory notes to confirm interest rates, maturity dates, payment frequencies, and whether collateral was pledged.
- Have your latest business balance sheet ready so you can cross-check that every liability over one thousand dollars appears on this schedule.
- Collect landlord contact information and lease terms if you have any real-estate or equipment leases with purchase options that lenders treat as debt.
- Confirm which state law governs your business so you can disclose it on the form; lenders need this for lien-priority research.
Step-by-step
1. Select and enter your governing state at the top of the form. If you operate in multiple states, use the state where your business is legally domiciled or where most assets are located.
2. For each debt, write the creditor name exactly as it appears on your statement, including any loan number or account reference.
3. Enter the current outstanding principal balance, not the original loan amount. Use the balance shown on your most recent statement dated within the last thirty days.
4. Record the annual interest rate as a percentage. If the rate is variable, note the index plus margin, for example "Prime + 2.5 percent."
5. Fill in the monthly or periodic payment amount, payment frequency, and the final maturity or payoff date from your loan documents.
6. Describe any collateral securing the debt: specific equipment, inventory, accounts receivable, real estate address, or personal guarantee. Write "Unsecured" if none.
7. State the original purpose of each loan in a few words: working capital, equipment purchase, vehicle, leasehold improvements, or refinance of prior debt.
8. Double-check that line-item balances add correctly to the total debt figure. Many banks auto-calculate this field, but verify it matches your own addition.
9. Sign and date the completed schedule, certifying that all information is true and current as of that date.
What lenders look for
- Underwriters compare this schedule against your credit report and UCC filings, so omitting even small debts or merchant advances will raise red flags and delay approval.
- List every obligation with a fixed repayment schedule, including seller notes, family loans documented by promissory note, and deferred purchase agreements, because lenders count those payments against your cash flow.
- Highlight any debt maturing within twelve months; banks want to know if a large balloon payment will compete with the new loan you are requesting.