Owner loans are loans given to the company by shareholders/office holders. The terms of the loan usually are determined in a founder’s agreement or owner loan’s agreement. Owner loans unlike investments are always a long-term liability. These particular loans are flexible compared to other loans. For example, many shareholder’s offer to their companies no interest. In addition, unlike many investments these loans do not cause any ownership dilution.
What is an “owner loan”?
About the Author: Jouman Abbud
Third year Law & Accounting student at the IDC Herzliya. Dreams of becoming a leading lawyer and leaving a mark on the industry