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July 13, 2022
Question

What would be the right category for the loan payment that I personally loan to an individual?

  • July 13, 2022
  • 1 reply
  • 11 views

The funds I lend to an individual was from the bank that I personally borrowed.  I am not earning any interesting from it but the bank.  Basically, I borrowed the funds for this individual and he/she is paying the monthly payments to me.  Then transfer this payments to pay the loan every month.  Whatever the loan payment for the balance is what exactly I am receiving.  I just don't know how to categorize the payment I am receiving from this individual.  I really appreciate your input.

1 reply

Rustler
Level 15
July 14, 2022

It sounds like you took out a personal loan.

And now you are paying it back

The fact that someone else is handing you the payment is immaterial in this case

It does not belong in the company financial documents, since it was personal

Tek3Author
July 18, 2022

Thank you for responding Rustler.