A debt schedule lays out all the obligations of a business based on its maturity. The primary purpose is to estimate the amount that a business needs to pay an obligation that matures.

Also, the debt schedule includes the business’s ability to monitor and make decisions to negotiate new credit lines that will result in refinancing or borrowing opportunities.


Presented below are the five significant considerations in creating a debt schedule used by financial analysts.

1. Strategize payments

A debt schedule can help you strategize when to pay off first when you have the means to fast-track your repayments. It will also show your monthly amortizations depending on your loan term, enabling the business to earn a good credit line when payments are made on time.

Also, with the help of a debt schedule, it will prompt the business to pay early to avoid penalties when overlooked. The business will gain rebates and eventually build its credit score to attract more creditors over time.

2. Keeping books accurate

Having good bookkeeping records of all the business financial obligations will help organize and prioritize amortization schedules and payments in due time. It will also ensure to match bookkeeping records according to bookkeeping methods used by the business.

Also, thorough record-keeping will fast-track its periodic monitoring reports of the accountants, financial analysts, investors, and internal users in their decision-making to undertake new investments and expansion plans.

3. Negotiate better interest rates

When the business can establish prompt payment with its outstanding loans, it will negotiate better interest rates through refinancing. Its debt schedule will also help monitor which obligations have been paying off timely and which have the highest rates that need to prioritize and make monthly payments in due time.

It will help the business set new targets for refinancing and convert the extra interest payments into funds for business operation.

4. Forecasting financial obligations

Forecasting financial obligations allow the business to see its overall amortization schedules that fall semi-monthly, monthly, or quarterly, depending on the duration of its maturity. The longer the maturity, the lesser the amount of amortization to pay.

It will eventually help the business assess when there is a need to liquidate assets to cover debts or if refinancing is feasible.

Also, the business can see clearly when all of its debts will be paid off and can consider future borrowing for other business ventures.

5. Borrowing decisions

To know the right time when the business can afford to borrow again, it needs to know how much it owes and weighs its capacity to meet its dues monthly and accordingly. If the business is considering new loans, its financial advisor has to look at the overall financial picture of the operation or wait for improvement over time before pursuing additional borrowings.

Above are the five significant considerations for creating a debt schedule used by financial analysts. Financial templates are available in eFinancialModels that will help the business set timely schedule debt payments and amortization.