Basics
Why Should I Increase the Share Capital Instead of Making a Loan to My Company?
Lending personal funds to the company may seem like a quick solution to obtain additional funds, but it can entail several disadvantages and significant financial risks. Here's why increasing the company's share capital is a much more beneficial and secure alternative: Financial Responsibility and Risk: When you lend money to the company, this loan becomes a financial obligation of the company to you as the lender. This means you become a creditor of the company and are exposed to anyFew readersHow Are Loan Transactions Matched in Companio?
In Companio, loan transactions are matched according to their purpose in the loan process. There are two main matching types: 1. Loan principal / Initial Principal Payment This represents the initial transfer of funds from the lender to the borrower when a loan is granted. It records the disbursement of the principal amount of the loan to the borrower, not the repayment. Example: A company signs a loan agreement for €50,000. When the lender transfers the €50,000 to the company’s bank accouFew readersWhy do I need to follow the loan amounts exactly as stated in the agreement?
When managing loans in your company’s accounting through our platform, it is essential to strictly follow the exact amounts specified in your loan agreement — both for the initial capital and for each repayment installment. Why is this important? Our system automatically matches payments to existing loan records. If the payment amounts do not match exactly, the system cannot match them correctly. This can result in: Errors in your financial reporting Delays in your Annual ReFew readersHow 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 toFew readers