How do I setup a co-op or retail credit line?

In this article, we'll walk through the process of creating a credit line inside your Chart of Accounts.

Method A: Credit Card Style

Method A is for businesses who need to setup a line of credit that works similarly to a credit card.

1. Create a New Account

Open up your Chart of Accounts

Click on New->Account

2. Create a New Credit Card Account

Fill out the required information:

Account Heading: Credit Cards
Entity: The Entity that is responsible for this account
Account Type: Credit Card
Name: The name you want to use to identify the account
Subheading: Optional
Balance Owed: Optional
Description: Optional

Click the Save & Close button

Your new credit card style co-op/retail line of credit is now available in your Traction account. You would manage this account like you would any other credit card. You can learn more about credit card transactions here.

Method B: Loan Style

Method B is for businesses who need to setup a line of credit that works similarly to other loan liabilities.

1. Create a New Account

Open up your Chart of Accounts

Click on New->Account

2. Create a Short-Term Line of Credit Account

Fill out the required information:

Account Heading: Notes Payable - Short Term
Entity: The Entity that is responsible for this account
Account Type: Line of Credit
Name: The name you want to use to identify the account
Subheading: Optional
Balance Owed: The amount of credit you have borrowed
Description: Optional

If you are not doing to enter in the specific details (described in Step 3) click the Save & Close button.

Otherwise, proceed to Step 3.

This step is Optional.

3. Add Loan Details

Click on the Details tab and fill in the all of the information.

Next, click on the Calculate Payment button.

This will generate a Payment amount for this Operating Loan.

This amount can be edited if it is not correct.

Confirm that the entries are correct and click on the Save & Close button.

Your new loan style co-op/retail line of credit is now available in your Traction account. You would manage this account like you would any other short term loan or liability account.