How to complete a Business Debt Schedule in Texas

Banks and SBA lenders require this schedule to understand every dollar your business owes before they approve new credit. It provides a snapshot of your debt load, repayment obligations, and what assets are already pledged as collateral so the lender can assess risk and determine available borrowing capacity.

- Most recent statements for every business loan, line of credit, equipment financing agreement, vehicle loan, and capital lease currently outstanding - Your current business credit report showing all trade lines and any guarantor obligations - Loan agreements or promissory notes that spell out interest rates, maturity dates, payment schedules, and collateral descriptions - Documentation of any shareholder loans, related-party debt, or deferred seller notes from a business acquisition - List of all leases you classify as capital or finance leases under your accounting method

1. Start with term loans first. For each one, enter the creditor name exactly as it appears on statements, original loan amount, current principal balance, annual interest rate, monthly payment amount, and final maturity date. 2. Describe the collateral securing each loan in plain language. Examples: all business assets and personal guarantee, 2021 Ford Transit VIN 1234, accounts receivable only, commercial real estate at 500 Main Street. 3. Note the purpose or use of proceeds for every debt. Common entries include working capital, equipment purchase, real estate acquisition, refinance of prior debt, or business acquisition. 4. List lines of credit separately. Show the credit limit, current drawn balance, interest rate, monthly minimum payment or interest-only amount, expiration or renewal date, and whether it is secured or unsecured. 5. Include all equipment loans and vehicle financing as separate line items even if they are with the same lender. Each asset and note should appear individually. 6. Add capital leases and finance leases that appear as liabilities on your balance sheet. Provide lessor name, remaining lease obligation, imputed interest rate if known, monthly payment, lease end date, and the leased asset description. 7. Disclose any subordinated debt, seller notes, or loans from owners and related parties. Texas lenders pay close attention to insider arrangements that may have repayment priority disputes. 8. Total the outstanding balance column and the monthly payment column at the bottom of the schedule. Double-check your addition because lenders will use these totals to calculate your debt service coverage ratio.

- Underwriters cross-check this schedule against your business credit report and tax returns, so every liability must appear. Omitting a loan, even a small one, raises red flags about accuracy and transparency. - If collateral on existing debt already covers all your equipment and receivables, the new lender knows they are in a junior position or must require a subordination agreement, which slows approval. - In Texas, personal guarantees are standard, so clearly mark which debts already carry your personal obligation versus business-only liabilities.