Manage all your loans and liabilities in one place.
The Liabilities lens allows you to create and manage debt, credit, inter-entity loans and indirect debt. Everything in the Liabilities lens contributes to your personal balance sheet, the Net Worth Statement Lens. There are four types of Liabilities
- Debt
- Credit
- Inter Entity
- Indirect
Debt
The Debt tab is for your typical and common liability, something like a mortgage. They can be associated with an asset, but don't have to be. Debt is an obligation to repay borrowed money that involves a contractual agreement with set terms for repayment, interest rate, and a specified timeframe.
Credit
Credit is an obligation to repay funds drawn from a pre-approved limit, involving a contractual agreement with terms for repayment and interest rates, typically without a specific repayment timeframe, allowing for flexibility in the usage and repayment of funds. This usually means a line of credit or credit card.
Inter-Entity
An inter-entity loan is a financial agreement where one entity lends money to another within the same organization, the borrowing entity incurs a debt, and the lending entity acquires a private credit asset.
Indirect
Indirect is used for tracking outstanding debt against an asset that you're not personally responsible for but wish to monitor.