Loan receivable is a banking term for an asset account that shows amounts owed by borrowers. The lender's ledger details all unpaid amounts from borrowers. Loans receivable are handled logically and transparently, like other accounting processes.[1]
The balance sheet shows loans receivable as current assets if they are repaid within one year. Otherwise, they are non-current assets and listed lower.[2]
- ^ "What Is Loan Receivable?". September 20, 2021. Retrieved January 20, 2025.
- ^ Bragg, Steven (July 5, 2024). "Loans receivable definition". AccountingTools. Retrieved January 20, 2025.