Hi All,
If one has a pty ltd company for which they are sole director and sole shareholder, I understand you can provide a director loan but there is a government set interest rate based on commercial terms. I think its something like BBSW + 5% so something like 7% at the moment?
If one were to make a short term temporary director loan repaid in a short period, could that loan be provided and then repaid at 0% interest rate, eg a loan repaid in 5 months? Are there any restrictions in doing regular short term loans?
Thanks in advance for all help.
If one has a pty ltd company for which they are sole director and sole shareholder, I understand you can provide a director loan but there is a government set interest rate based on commercial terms. I think its something like BBSW + 5% so something like 7% at the moment?
If one were to make a short term temporary director loan repaid in a short period, could that loan be provided and then repaid at 0% interest rate, eg a loan repaid in 5 months? Are there any restrictions in doing regular short term loans?
Thanks in advance for all help.