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Chris H
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EBC, post: 183811 wrote:
Hi.

I’m the sole owner and director of a new Pty Ltd and was wondering if it is possible (and legal) to lend money (from my own personal savings) to my company and receive interest on the loan? I’d rather go down this route than have to pay high interest rates to a bank on a small loan.

Thanks!

Neil

Hi Neil,

Short answer is that yes you can, I did the same thing when starting my own business. Just keep in mind that any interest you receive from the company is taxable income.

It’s also really important to make sure that you keep the separation between company and personal finances really well defined or you could lose the asset protection that a PTY LTD company provides if anything was ever to happen.

Cheers,

Chris