What this form is for
Lenders and SBA underwriters require this schedule to understand your complete debt picture before approving new financing. It shows every existing obligation—term loans, lines of credit, equipment notes, vehicle leases, and real-estate mortgages—so the bank can calculate your debt-service coverage ratio and verify you can handle additional borrowing.
Before you start
- Loan agreements and promissory notes for every business debt, including the original loan amount, current balance, interest rate, monthly payment, and maturity date.
- Credit line agreements showing the total available credit, current draw, interest rate, and renewal terms.
- Lease contracts for equipment, vehicles, and real estate with monthly payment amounts, lease-end dates, and buyout provisions if applicable.
- Recent statements from each creditor showing current balances and payment status.
- Collateral descriptions and lien positions for secured debts, including UCC filings and titles if you pledged specific assets.
Step-by-step
1. List each creditor by legal name exactly as it appears on your loan documents, starting with the oldest or largest obligations first to keep your records consistent.
2. Enter the original loan or credit amount in the appropriate column, then record the current outstanding balance as of the most recent statement date.
3. Fill in the annual interest rate as a percentage, the monthly or periodic payment amount, and the maturity or lease-end date in month-day-year format.
4. Describe the collateral securing each debt—for example, 2021 Ford Transit VIN ending in 5678, or blanket lien on accounts receivable and inventory—and note whether it is a first or second lien position.
5. State the business purpose for each obligation such as working capital, equipment purchase, real-estate acquisition, or vehicle lease so the lender understands how you deployed past capital.
6. For revolving lines of credit, indicate both the credit limit and the current drawn balance, along with the expiration or annual-renewal date.
7. Include any personal guarantees or co-signers in a notes column if the form provides space, since Pennsylvania lenders frequently require owner guarantees on business loans.
8. Total the current balances and monthly payments at the bottom of the schedule; most forms auto-calculate these fields if you are using a spreadsheet or digital template.
9. Double-check that every loan, lease, and line listed on your business credit report appears on this schedule—omissions raise red flags during underwriting.
What lenders look for
- Banks compare your total monthly debt payments against monthly revenue to compute debt-service coverage; ratios below 1.25 often trigger declines, so be prepared to explain how new financing improves cash flow.
- Disclose all obligations including related-party notes or informal shareholder loans; hiding debts discovered later can void your application or trigger default clauses.
- Highlight any debts you plan to refinance or pay off with the new loan proceeds, since retiring high-interest obligations strengthens your application and improves your coverage ratio.