Record who the borrower owes
Start with the legal lender named on each agreement. A person, an HUF and a company may each have an agreement with the same borrower. Keep the agreements tied to their respective lenders even when one finance team maintains the records.
Record which account handled each disbursement and repayment. Give each account a consistent reference so a reviewer can find the matching statement line.
Review movements with the matching lender and account
At month end, compare each lender’s loan ledger with the relevant bank or cash movements. Match amounts, dates and references. Flag an unexplained difference for review and retain the underlying evidence.
Start your reporting with one lender, one currency and one date range. When preparing a wider review, retain a breakdown by lender so the people reviewing it can reconcile each balance.
Three agreements under one borrower
| Reference | Lender on agreement | Source account |
|---|---|---|
| A-101 | Individual | Individual bank account |
| B-201 | HUF | HUF bank account |
| C-301 | Company | Company bank account |