Recording Business Loan

I would like to enter the outstanding amount and payments on a loan.
The loan is from my company to another company and they will be paying in monthly installments.
How is it best to do this, would the following work:

  1. create a new account in Assets, called “Loan”
  2. Transfer from cash account to asset account the amount of the loan
  3. this is the part I’m not sure about; how should I process payments?

You won’t be able to use the Transfer Money function. That is only for moving money between bank and cash accounts. Instead, Spend Money, with the recipient as the payee. Allocate to the loan account.

When you get a payment, use Receive Money and allocate to the loan account, with any interest portion being allocated to an income account named something like Loan Interest.

Thanks for the tip, that looks like it’ll work well