Finance question
Can I refinance a director loan or shareholder loan?
Often yes. Money a director or shareholder has put into the business can usually be repaid by refinancing against a business asset or property, so the individual gets their funds back and the business carries a proper commercial facility instead. Speak to your accountant on the tax side, and the finance side is subject to lender assessment.
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The short answer
Get the director's money back out
Directors and shareholders often prop up their own business with personal cash, tipping in funds to cover a shortfall, buy a machine or make payroll. That loan sits on the books as money the company owes the individual. Refinancing lets the business raise a commercial facility, repay the director or shareholder, and move the debt onto proper finance terms.
How it is secured decides the shape of the deal. If the money originally funded equipment, the business can refinance against that asset. If a larger sum is involved, or the funds went into general working capital, a property-backed facility is usually the route, at single-digit rates and often with no up-to-date financials required.
The tax and accounting treatment matters here, so this is one to run past your accountant alongside us. Our part is arranging the finance that repays the loan cleanly. Their part is confirming how the repayment and any Division 7A or shareholder considerations are handled. We work to the structure they set.
Do you qualify?
What makes a director loan refinance work.
A loan on the books
Funds a director or shareholder has lent the business.
Security to lend against
A business asset or property to support the new facility.
An active ABN
Companies and trading entities qualify.
Accountant alongside
Your accountant confirms the tax and Division 7A treatment.
Why refinancing the loan helps
Frees the individual
The director or shareholder gets their personal funds back out.
Proper terms
An informal loan becomes a structured facility with a clear repayment.
Low rate on property
Secured against property, the facility sits at single-digit rates.
A real example
A director lent their company $150k over two years to buy plant and cover wages. With equity in an investment property, the business raises a property-backed facility, repays the director in full and holds a single commercial loan at a single-digit rate. The accountant signs off the treatment. Illustrative only.
Common questions
Frequently asked questions
Can the business repay me the money I lent it?
Often yes. The company can refinance against an asset or property to repay a director or shareholder loan, subject to lender assessment and your accountant's advice.
What can secure the new facility?
A business asset the funds bought, or property equity for larger sums at single-digit rates. The security drives the structure.
Do I need financials?
Many property-backed facilities need no up-to-date financials, though your lender and accountant will confirm what the deal requires.
Is this a tax question or a finance question?
Both. We arrange the finance that repays the loan; your accountant confirms the tax and Division 7A treatment. We work to their structure.