How to Handle Money I Lend

Prior versions of Quicken for Windows used a wizard to setup loans based on money you borrow and money you lend. As of Quicken 2013, that wizard is now obsolete and has been removed from the product. There is a new method for handling the account setup for money you lend, which can also be used in prior versions of Quicken:

1. Click the Add Account button at the bottom of the Account Bar or Account List (Ctrl + A).
2. Choose Other Asset and click Next.
3. Enter the date you made the loan and the loan amount* and click Next.
4. Select No when prompted "Is there a Loan for this Asset?” and click Next.
5. Click Done.

OPTIONAL - You can add an Income Reminder from Tools > Manage Bill & Income Reminders (Ctrl + J) to help you plan for the expected loan payment to be received, and track your interest income (if you’re charging interest): 

6. Click Create New > Income Reminder.
7. Enter the name of the person/entity that will be repaying the loan and click Next.
8. Select Change next to the Due Next On field
   1. Select the Start Date, the date the first (or next) payment is due.
   2. Select the Frequency, as agreed upon between yourself and the party you’re lending to.
   3. End After should equal the number of payments agreed upon between yourself and the other party. Example: a 5 year loan would be paid over 60 months, so if you chose Monthly in the Frequency field, you would enter 60 in the number of reminders field.
9. Enter the total amount of the individual payment due each period.
10. To Account is the account where you'll be depositing that payment.
11. Click Add Category, Tag or Memo
    1. Zero Interest Loan:
       1. Select the Other Asset account you created above (steps 1-5), which will be found in the Transfer Categories.
    2. Interest Charged Loan:
       1. Select the Split icon to the right of the Category field.
       2. Select the Other Asset account and enter the principle amount of each payment.
       3. Select your Interest Income Category on the next split line, and enter the amount of interest due each period.
    3. Optional: Select Tag and/or enter Memo as desired, and click OK.
12. You can choose to have Quicken Remind you when the payment is due to you for you to enter the payment, or you can change the setting to Automatically Enter and the Reminder would automatically add that transaction to your register when you want it to (from 0 to 999 days before the deposit is due).

*Step 3 (above): This can also be the current balance due to you, if some payments have already been made & you do not intend to manually enter those historical transactions.

DEVELOPMENT NOTE: There will be an option to Convert to Lending Loan implemented in a future release of the program that will launch a new wizard to create the amortization schedule & reminders automatically. For more information on that feature, see Quicken Help > Property & Debt > Managing loans > Set up a loan for which you are the lender. Be sure to update your Quicken regularly to ensure that you get this feature when the patch is available.

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