Yes, you can. As this would be an unsecured loan, you could charge a commercial rate of interest to the company. However, there are several things to bear in mind.
Herein, can a business loan another business money?
The answer is yes! If the company that is lending money is allowed to do so under its corporate charter or if the officers of the company that are looking to lend money are authorized to lend company’s capital to other companies through its charter, following steps should be considered: Agree on terms of such loan.
Additionally, can you use a business loan to pay yourself?
But can you pay yourself? Yes, if the funding is there. According to the SBA, operating expenses, besides equipment, raw materials and staff payroll, “include your salary as the owner and money to repay your loans.” Having said that, one major caveat is that you must be cautious in the amount you pay yourself.
How can I lend my business money?
How to Get a Business Loan in 7 Steps
- Decide what type of loan you need to fund your business. …
- Determine if you qualify for a business loan. …
- Determine what payments you can afford. …
- Decide whether and how you want to collateralize the loan. …
- Compare small-business lenders. …
- Gather your documents. …
- Apply for a business loan.
How do I put money into my limited company?
If your business is not a corporation, you can put money into your business by just writing a check and depositing it in the business bank account. The money should go into your individual capital account under the classification of owner’s equity on the balance sheet.