Division 7A loan agreement covers the situation in which a company makes a loan:
- to a shareholder or shareholders of that company; or
- to an associate of a shareholder of that company
- requires a documented and esigned agreement between both parties.
Loan administration means to:
- track loan repayment transactions for the duration of the loan
- automatically calculate the minimum annual repayment amount
- apply the annual reference interest rate changes
- send repayment reminders and alerts.