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-   -   Interest on loan from officer of company (https://www.askmehelpdesk.com/showthread.php?t=103263)

  • Jun 21, 2007, 04:48 PM
    BHolmes
    Interest on loan from officer of company
    If an officer of a company loans the company money, how should the rate of interest on this loan be calculated? At what rate?
  • Jun 21, 2007, 05:32 PM
    CaptainForest
    The interest should be no more than current market rates.

    If the company can go get a bank loan at 5%, then they should not be borrowing this money from the officer at more than 5%

    But it is all very subjective and will vary based on the type of company, the type of people involved, etc.
  • Jun 21, 2007, 07:32 PM
    bhet
    The interst rate would be based upon the agreement of the involved parties.
  • Jun 21, 2007, 07:51 PM
    CaptainForest
    Good answer bhet

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