Loan origination fee

mdayton · ‎December 10, 2018

I took out a business loan earlier this year from Paypal Loanbuilder. The loan amount was for 7500.00. There was a fixed loan origination/interest amount of 858.06. $7500.00 was deposited to my account, but the total loan amount to be repaid was 8358.06. I already setup the 7500.00 loan in my chart of accounts as a "Other Current Liabilities" with a balance of 7500.00 to be paid (already paid off, but I know how to match the payments from my checking account). My question is, how to I get the loan origination/interest amount of 858.06 added to the "Other Current Liabilities" register? And where does the 858.06 come from?

Thanks!

Anonymous · ‎December 10, 2018

Open the register and enter the amount. Open the register by double clicking on the account on the chart of accounts.

mdayton · ‎December 10, 2018

And the origination/interest fee should be debited from the Interest Paid account?

vcvolanti · ‎January 13, 2019

Did you ever get a solid answer on this or figure out how to account for it? I am having the same issue. Thanks!!

CarlosDosAmigos · ‎June 10, 2022

I had the same problem and could not get the origination fee/interest added after the fact. I created a new loan that started with the origination fee/interest as the balance, then when the deposit from the loan hit my bank account I categorized that deposit as part of the loan, so it all looks like a liability.

Hope this helps.

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Loan origination fee