How Do Loans Work In Companio. Can I Lend Money To My Business?
Companio offers flexible support for three types of loans:
Loan from a Board Member to the Company: A board member lends money to the company.
Intercompany Loan (from Your Company to Another Business): Your company lends money to another business.
Loan from Another Business to Your Company: Another business lends money to your company.
Unsupported Loans: Loans from your company to an individual are not permitted, as this would require a financial license (similar to a financial institution).
If you need to inject capital to your business, we would recommend you to increase the share capital instead. In this FAQ , we explain why.
Our loan features are designed for straightforward lending needs, ideal for injecting capital into the company or managing simple intercompany loans. For more complex financing requirements, we recommend consulting with a financial institution.
How Do Loans Work in Companio?
Once you register a loan, Companio will automatically look for the initial payment. This initial transaction should occur within one month of signing and registering the loan in the platform. From the agreement date onward, our system will check monthly for payments matching the loan’s installment schedule and automatically reconcile them.
Setting up loans in Companio is easy and customizable. You can:
• Define the loan amount,
• Set an interest rate between 0% and 20%,
• Choose the number of installments.
Our system will then calculate each installment amount and the final repayment date for you.
Example
Let’s say you add a loan from a board member to the business for a total of €1,000 at 0% interest, to be repaid in 10 monthly installments of €100 each. Companio will first look for an incoming payment of +€1,000 from the board member. Each month, it will then look for outgoing payments of -€100 to that same member and automatically match them with the loan.
How to Register a Loan in Companio
Access the “Agreements” Section: Start by going to the “Agreements” section in your dashboard. Here, you’ll see any existing loans.
Click on “Add New”: Choose the type of loan from the following options:
• Member Lending to Business: When a board member lends to the business.
• Lend Money to Company: Your business lends money to another company.
• Borrow Money from Company: Your business borrows from another company.
Enter Loan Details:
• Amount to Lend: Total amount of the loan without interest. (This should be a one-time payment to the borrower.)
• Currency: Currency in which the loan is issued.
• Interest Rate: Choose from 0% up to 20%.
• Number of Installments: Set the number of payments to repay the loan.
With this information, Companio will calculate the monthly installment amount and final payment date. Once you review and confirm the details, click on “Confirm” to finalize the loan setup.
Next Steps
After registering the loan, you’ll have up to one month to make the initial payout. If the system hasn’t detected the transaction within that time, we’ll send you a reminder. Each month, check that the installments are properly recorded and matched to ensure smooth tracking.
Note: Make sure to regularly verify that payments are made and matched correctly in the system. This will help ensure the loan is accurately tracked in your financial records.
Loan from a Board Member to the Company: A board member lends money to the company.
Intercompany Loan (from Your Company to Another Business): Your company lends money to another business.
Loan from Another Business to Your Company: Another business lends money to your company.
Unsupported Loans: Loans from your company to an individual are not permitted, as this would require a financial license (similar to a financial institution).
If you need to inject capital to your business, we would recommend you to increase the share capital instead. In this FAQ , we explain why.
Our loan features are designed for straightforward lending needs, ideal for injecting capital into the company or managing simple intercompany loans. For more complex financing requirements, we recommend consulting with a financial institution.
How Do Loans Work in Companio?
Once you register a loan, Companio will automatically look for the initial payment. This initial transaction should occur within one month of signing and registering the loan in the platform. From the agreement date onward, our system will check monthly for payments matching the loan’s installment schedule and automatically reconcile them.
Setting up loans in Companio is easy and customizable. You can:
• Define the loan amount,
• Set an interest rate between 0% and 20%,
• Choose the number of installments.
Our system will then calculate each installment amount and the final repayment date for you.
Example
Let’s say you add a loan from a board member to the business for a total of €1,000 at 0% interest, to be repaid in 10 monthly installments of €100 each. Companio will first look for an incoming payment of +€1,000 from the board member. Each month, it will then look for outgoing payments of -€100 to that same member and automatically match them with the loan.
How to Register a Loan in Companio
Access the “Agreements” Section: Start by going to the “Agreements” section in your dashboard. Here, you’ll see any existing loans.
Click on “Add New”: Choose the type of loan from the following options:
• Member Lending to Business: When a board member lends to the business.
• Lend Money to Company: Your business lends money to another company.
• Borrow Money from Company: Your business borrows from another company.
Enter Loan Details:
• Amount to Lend: Total amount of the loan without interest. (This should be a one-time payment to the borrower.)
• Currency: Currency in which the loan is issued.
• Interest Rate: Choose from 0% up to 20%.
• Number of Installments: Set the number of payments to repay the loan.
With this information, Companio will calculate the monthly installment amount and final payment date. Once you review and confirm the details, click on “Confirm” to finalize the loan setup.
Next Steps
After registering the loan, you’ll have up to one month to make the initial payout. If the system hasn’t detected the transaction within that time, we’ll send you a reminder. Each month, check that the installments are properly recorded and matched to ensure smooth tracking.
Note: Make sure to regularly verify that payments are made and matched correctly in the system. This will help ensure the loan is accurately tracked in your financial records.
Updated on: 05/11/2024
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