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LivePlan provides flexible options for modeling your business's financing, including loans, investments, and lines of credit. The right choice depends on how you’re receiving funds and whether you’ll need to pay them back.
Entering financing in LivePlan
You can use the Financing page to enter funding details for large purchases, such as vehicles or major capital improvements. You can then adjust these entries as your plans evolve.
You can add start up cash, such as capital from investors or personal contributions from founders. If your funding is in the form of a loan and you already know your financing terms, LivePlan makes that easy by calculating your payments automatically in your forecast.
Not sure where your funding will come from yet? That’s perfectly fine. You can use the Add Other option to enter estimated amounts and rough repayment details now, then refine the terms later as you secure funding. This option is also ideal if your loan terms are more complex, such as deferred interest or irregular payments.
Choosing the correct financing option
Below is a quick guide to each financing entry option in LivePlan, along with a few common examples to help you choose the right option:
Add Loan
Traditional loans with regular, equal monthly payments over a fixed term. LivePlan will automatically calculate amortization with principal and interest included in each payment.
Common examples:
- A term loan from a bank or credit union with monthly repayment over a set period.
- An SBA loan with predictable repayment terms.
- A loan for purchasing equipment that is repaid in equal installments.
- A commercial real estate loan with standard monthly payments over time.
Follow this step-by-step guide to learn how to set up an Add Loan entry in LivePlan: Entering loans, interest, and loan payments
Add Investment
Your business receives funds that don’t require repayment, often in exchange for equity or ownership. This includes contributions from investors and founders.
Note: You can create Dividend entries for investments to represent future payouts to your investors.
Common examples:
- A founder or partner contributing personal funds to help grow the business.
- An angel investor or early-stage investor providing capital in exchange for equity.
- A venture capital firm investing in return for a share of the company.
- Equity crowdfunding where multiple small investors contribute capital online.
Follow this step-by-step guide to learn how to set up an Add Investment entry in LivePlan: Entering an investment
Add Line of Credit
You have a revolving credit option where you can draw and repay funds as needed, up to a set limit. Interest is only charged on the amount currently borrowed.
Common examples:
- A business line of credit used to manage cash flow or seasonal expenses.
- A business credit card used for operational purchases with varying monthly balances.
- A short-term credit facility to help cover inventory or payroll during busy periods.
Follow this step-by-step guide to learn how to set up an Add Line of Credit entry in LivePlan: Entering a line of credit
Add Other
Use this for financing with custom or irregular terms that don’t follow a standard repayment pattern, such as deferred payments, interest-only periods, balloon payments, or multiple disbursements. This option gives you full control over how and when funds are received and repaid. This is also an good option for inputting placeholder financing if you don't know the terms of your loan yet.
Common examples:
- A balloon loan with interest-only or no payments for a period followed by a larger final payment.
- A revenue-based loan with payments that change based on monthly earnings.
- A loan with deferred repayment, where payments begin after a delay.
Follow this step-by-step guide to learn how to set up an Add Other entry in LivePlan: Entering loans with custom terms