Intercompany and Shareholder Loans
Loans between group companies or from shareholders: the same repayment patterns as bank loans, recorded as borrowed or granted in LoanMonitor.
Building block: Direction (Borrowed or Granted)
Also known as: Gesellschafterdarlehen, konzerninternes Darlehen, Cash-Pool-Darlehen, related-party loan, shareholder loan
Loans between group companies or from shareholders follow the same patterns as bank loans. In practice they are most often bullet loans with annual interest, sometimes with a payment holiday at the start, and they are frequently renewed year after year. What differs is the point of view: the same contract is a liability for one company and an asset for the other.
How it works
The schedule is identical to the corresponding bank loan type. Only the sign of the cash flows depends on the direction: the borrower pays interest and principal, the lender receives them.
Example
100,000 EUR at 4.00 % p.a., 5 years, bullet, seen from both sides.
| Year | Borrower pays | Lender receives | Remaining balance |
|---|---|---|---|
| 1 | 4,000.00 interest | 4,000.00 interest | 100,000.00 |
| 2 | 4,000.00 interest | 4,000.00 interest | 100,000.00 |
| 3 | 4,000.00 interest | 4,000.00 interest | 100,000.00 |
| 4 | 4,000.00 interest | 4,000.00 interest | 100,000.00 |
| 5 | 104,000.00 interest + principal | 104,000.00 interest + principal | 0.00 |
If both companies are in your LoanMonitor customer, record the loan once per company with opposite directions. The portfolio then shows the liability on one location and the receivable on the other.
In LoanMonitor
- Wizard, Parties: set the Direction. Borrowed means your company receives the money and repays it, Granted means your company lends the money and is repaid.
- Choose the counterparty kind Company for a group entity or Individual for a private shareholder when you record the other party.
- Pick the repayment type that matches the agreement, usually Bullet; see Bullet Loan.
- Yearly renewals of a shareholder loan are recorded under Adjustments → Renewals; see Rate Lock and Prolongation.
- Both directions appear in the same portfolio, and dashboards can split by direction.