How to record business loans and interest
Web
Updated Aug 2026
If you take a loan to fund the business — or lend money out — it needs to be on the books properly. RushFlow tracks the principal and the interest separately, so a repayment reduces the loan and records the interest cost, and your balance sheet shows what you truly owe (or are owed).
Step by step
- Record the loanWeb: record the loan received (a liability) or given (a receivable), with its terms.
- Record repaymentsEach repayment splits into principal (reducing the loan) and interest (a cost), automatically.
- See the balanceThe outstanding loan and interest to date show on your accounts.
Where to find it
Web: the business-loans area of accounting. App: owners can view business loans in the management app.
Separating principal from interest keeps both your liabilities and your interest expense correct.
Frequently asked questions
Can RushFlow track a business loan and its interest?
Yes. It records the principal and interest separately, so repayments reduce the loan and record interest cost, and your balance sheet stays correct.
Ready to run your business on RushFlow?
Start a free trial, or explore the live demo — no credit card needed.
Create your account →