USA Loan Repayment

[gillman]

Hi All!

The company I have joined have a loan from an existing shareholder. In the loan agreement there is nothing to determine how any payments will be applied. We have begun initiating payments against this loan, and I'm not sure if the payments are applied against principal, interest, or a combination. There is existing accrued interest against the loan also.

 

[kirby]

Hi
That's a pretty poorly written agreement!
Anyway, since this is with an existing shareholder, I would ask your CFO or CEO to communicate with the shareholder and establish what the payment schedule is and the interest rate, so that they NOW set out the terms for you to follow.