What this form is for
Banks and SBA lenders require this schedule during underwriting to map your existing debt obligations, calculate your debt-service coverage ratio, verify collateral liens, and confirm no hidden liabilities exist that could impair repayment of the new loan.
Before you start
- Current loan statements or payoff letters for every term loan, line of credit, equipment note, vehicle loan, and mortgage the business carries
- Lease agreements for real estate, equipment, and vehicles showing monthly payment, maturity date, and lessor contact information
- Most recent balance, interest rate, payment amount, original loan date, and maturity date for each obligation
- Documentation of collateral pledged to each creditor, including UCC filings, deeds of trust, and security agreements
- Personal guarantees and any subordination agreements already in place
Step-by-step
1. Start with term loans first. For each one, enter the creditor name exactly as it appears on your statement, original loan amount, current outstanding balance, annual interest rate, monthly payment, and final maturity date.
2. Identify and describe the collateral securing each loan. Use precise language: "2022 Ford F-150 VIN 1FTFW1E85NFA12345" not just "truck," or "123 Main Street, Sacramento CA 95814 APN 456-789-012" for real property.
3. Note the loan purpose in the designated column—working capital, equipment purchase, real estate acquisition, refinance, or other specific use. Vague entries raise red flags.
4. Add all lines of credit next, showing the credit limit, current drawn balance, interest rate, and expiration or renewal date. Include both revolving and non-revolving facilities.
5. List equipment leases separately, providing lessor name, monthly payment, lease term end date, and whether the lease is capital or operating under California Commercial Code standards.
6. Enter vehicle leases and real estate leases with the same detail: landlord or lessor, monthly payment, lease expiration, square footage or unit count for real estate.
7. Include any seller notes, shareholder loans, or related-party debt even if informal. Lenders must see the full picture of cash obligations.
8. Total each column at the bottom. Most schedules auto-calculate if digital; double-check that monthly payment totals and outstanding balance totals are correct.
9. Attach a brief footnote for any debt in forbearance, modification, or dispute, and note if any creditor holds a blanket lien on business assets.
What lenders look for
- Underwriters cross-check your schedule against credit bureau commercial reports and UCC filings, so omissions or inconsistencies trigger immediate requests for explanation and delay closing.
- California law requires specific disclosures on certain equipment leases; make sure lease-versus-loan classification is accurate or the lender may recharacterize obligations and recalculate your debt ratios.
- Highlight any debt maturing within twelve months of your loan closing date, as lenders often require refinance or payoff plans before approving new credit.