Finance term
Debt Schedule
Also known as: schedule of liabilities, existing debt summary
Definition
A debt schedule is a one-page summary of all current business and personal debt obligations — listing lender name, original balance, current balance, monthly payment, interest rate, and maturity date — required by most SBA and bank loan applications.
Detailed explanation
The debt schedule (also called a schedule of liabilities) gives the lender a complete picture of existing debt obligations before adding new financing. It is a standard exhibit in SBA loan packages and most bank commercial loan applications, and is often the single document that most directly reveals the borrower's total debt-service burden.
A complete business debt schedule includes: all term loans (balance, payment, lender, maturity), lines of credit (limit, current balance, monthly minimums), equipment financing, merchant cash advances or revenue-based financing, commercial real estate mortgages, business credit cards, and any shareholder/owner loans to the business. For SBA loans requiring personal guarantee, the lender also typically wants a personal debt schedule covering mortgages, auto loans, student loans, and personal credit card balances.
Lenders use the debt schedule to calculate global DSCR — the combined debt service coverage ratio across all existing and proposed debt. If existing obligations already consume most of your cash flow, adding new debt may not be approvable regardless of other factors. Cleaning up or paying down high-payment debt before applying can significantly improve the debt schedule picture.
◈ Worked example
- A trucking company's debt schedule: Equipment loan #1 ($45,000 balance, $1,100/month, 36 months remaining), Equipment loan #2 ($28,000 balance, $850/month, 24 months remaining), Business line of credit ($30,000 balance, $600/month), Commercial building mortgage ($420,000 balance, $3,200/month, 22 years remaining). Total monthly debt service: $5,750.
- An SBA 7(a) application requires SBA Form 413 (Personal Financial Statement) plus a separate business debt schedule. The combined debt service is divided into annual DSCR against business cash flow.
- MCA impact on debt schedule: a $40,000 MCA with $800/week remittance = $3,467/month — more expensive than it looks on a monthly basis, and often the factor that blocks SBA eligibility.
Common questions
The most-asked questions about Debt Schedule — answered straightforwardly.
Does a merchant cash advance appear on a debt schedule? +
It should. Most lenders now ask specifically about outstanding MCAs and revenue-based financing. Even though MCAs are technically not loans (they are purchase agreements), their daily/weekly remittances consume cash flow. Omitting them misrepresents your cash flow picture and can be treated as misrepresentation on the application.
What format should a debt schedule be in? +
SBA lenders often use a standardized form, and most require at minimum: creditor name, original loan amount, current balance, monthly payment, interest rate, maturity date, and collateral. A simple spreadsheet organized by these columns is sufficient for most bank applications. Some SBDCs provide templates — your SBDC advisor can supply one.
How does the debt schedule affect DSCR? +
DSCR = annual cash flow / annual debt service. The debt schedule's total monthly payments × 12 = annual debt service denominator. Higher existing debt service = lower DSCR. Most lenders require global DSCR (including the proposed new loan) of 1.25x or above. If your existing debt schedule produces DSCR below 1.25x even before adding the new loan, approval is unlikely without debt reduction.
Further reading
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