Business Loan

by Irma
(Houston, TX)

If a personal loan is made to a business (for working capital) how long can it be on the "books". In other words a loan was made in 2008 but not paid because the business did not have sufficient funds to pay. Can it be paid now?


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Hi Irma!

If you loan personal funds to your business, you should make out some type of loan document, just a simple statement that's signed and dated is fine. You can keep it on the books as long as you need to. If you've gotten to the point where the business can pay you back now, go ahead and pay yourself back.

I would suggest making that loan document and back-dating it, and keeping it in your files.

Hope that helps!

Kathy

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