Accrued Interest - What is it? and how to calculate it?
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- Опубликовано: 30 июл 2024
- Grab your copy of the EIDL amortization schedule: claracfo.podia.com/eidl-amort...
In accounting, accrued interest refers to the amount of interest that has been incurred, as of a specific date, on a loan or other financial obligation but has not yet been paid out.
Accrued interest is charged and accumulated on the total amount due. It INCREASES your total debt when you don’t pay it off.
Videos mentioned: • EIDL Repayment Schedul...
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Hannah Smolinski is a #CPA and the Founder of Clara CFO Group. Find out more about Clara CFO Group at claracfo.com/
Disclaimer: This video is intended for educational purposes and
should not be taken as legal or tax advice. You should consult with your financial professionals about your unique financial situation before acting on anything discussed in these videos. Clara CFO Group, LLC is providing educational content to help small business owners become more aware of certain issues and topics, but we cannot give blanket advice to a broad audience.
OMG!!! You just saved me a bunch of money. Thank you so very much!!!
Yay! Glad to hear it!!
Good point .. not to mention you have to pay hazard insurance or business personal insurance for the life of the loan …
Thanks! I I used this video to understand an investment I have with a bank, rather than a loan I have. Still helped me as it’s a form of a loan the bank has with me? Anyhoooow - this helped thank you
Good info, but how do you record this in Quick books?
I didn't know that thank you so much for the information. Is the 2 year extension for every EIDL?I don't recall getting any info on that. But know now I better start paying back as soon as possible. Still glad I got it without I don't think I would have survived.
It's an automatic extension. You can call the SBA and confirm the repayment date for your particular loan.
What if I paid the accrued interest? What’s next?
Thank you
Thanks for watching!
Hi,so they sent me a dash card with on my money on there. Do I still should transfer money to my personal account weekly ?
Not sure what this means. What is a Dash card? And who is "they"?
Why is the interest accrued each month fluctuating up and down? If it’s a fixed percentage, shouldn’t it slowly increase as the principle+accrued accumulate?
You are saying the SBA is charging interest for the PPP, not the lender who funded the loan? The real problem is when the lenders are 'not ready' and are 'not accepting' Forgiveness applications for 2021 PPPs. They are still working on 2021. My fear is 6 months down the line they will find something to not forgive and that amount will be accruing interest because of their doing.
The whole program is an SBA loan THROUGH the banks. The banks are basically AGENTS for the SBA. So the SBA forgives the loan AND accrued interest. I agree that it is annoying that not all banks are accepting forgiveness applications yet....but remember you have 10 months AFTER the end of your covered period to apply for forgiveness without making any payments on the loan!
@@ClaraCFO Thanks for the response. I guess I Think of ‘Government backed loans’ differently but semantics is the least of the problems. Having 10 months is great if the interest wasn’t accruing. I’d rather apply now and find out something is not going to be forgiven and pay one months interest for example as opposed to waiting 10 months finding out same and paying 10 months worth of interest. And I don’t know of any rule that is imposed for lenders to act more quickly because they do have more (interest) To gain by delaying the process. Btw Love your videos.
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