Shareholder Loan

Shareholder loan is a debt-like form of financing provided by shareholders. Usually, it is the most junior debt in the company's debt portfolio, and since this loan belongs to shareholders it should be treated as equity. Maturity of shareholder loans is long with low or deferred interest payments. Sometimes, shareholder loan is confused with a loan from company to shareholders.

Read more about Shareholder Loan:  Applications, See Also

Famous quotes containing the word loan:

    Slight was the thing I bought,
    Small was the debt I thought,
    Poor was the loan at best—
    God! but the interest!
    Paul Laurence Dunbar (1872–1906)