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. On the other hand, if this loan belongs to shareholders it could be treated as equity.[1] Maturity of shareholder loans is long with low or deferred interest payments. Sometimes, shareholder loan is confused with the inverse, a loan from a company that is extended to its shareholders.

  1. ^ Gelter, Martin and Jurg Roth (2007). "SUBORDINATION OF SHAREHOLDER LOANS FROM A LEGAL AND ECONOMIC PERSPECTIVE" (PDF). cesifo-group.de. Retrieved 2014-02-04.