Ask Experts Questions for FREE Help !
Ask
    emjabuk's Avatar
    emjabuk Posts: 1, Reputation: 1
    New Member
     
    #1

    Sep 27, 2012, 08:29 AM
    Shareholders have invested .5 million in the company. The company has very low debt b
    Shareholders have invested .5 million in the company. The company has very low debt but it is at a high interest. We want to refinance but the shareholder loans show up as a big liability on our balance sheet. This affects our ability to refinance as the debt to equity ratio looks bad.

    How do we convert our shareholder loans to share equity to improve balance sheet?
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member
     
    #2

    Sep 27, 2012, 09:08 AM
    Give the shareholders stake in the company. i.e. issue stock for the loans.

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Zakath on money invested in public company shares [ 0 Answers ]

I live in Australia. I have invested say about Rs7,000 in Sri Lanka in shares. I do not receive any dividends since I do not collect the cheques the company post to my residential address in Sri Lanka. I can not calculate zakath on the dividend income since I do not collect them. Do I have to...

A company reports sales revenue of $200 million the current year and $180 million [ 0 Answers ]

13. A company reports sales revenue of $200 million the current year and $180 million last year. Their total assets in the current year are $150 million and last year's total assets were $130 million. What is the current year's asset turnover ratio? A. 1.48 B. 1.33 C. 1.36 D. 1.43

How can I write a good company profile as my company deals in debt collections. [ 1 Answers ]

Am setting up a company dealing in debt collections. Am an accountant and my partner is an attorney- lawyer. We want to contact banks, hospital insurance hotels and persons as doctors.

Company Law: Directors vs Shareholders [ 8 Answers ]

My situation may be rare but I am going to put it to you: A company with 3 directors (1 is a managing director and the husband of a director); the other 2 directors are the son and wife/mother. There is a breakdown in the relationship between husband and wife; she starts taking cash from the...

Company as a property of shareholders only! [ 6 Answers ]

Is company only a property of its shareholders? If not, in what way it is not, explain!


View more questions Search