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Personal line of credit
03-10-2015, 06:39 AM
Post: #1
Personal line of credit
Hi
If a personal line of credit is used to fund the business is the line of credit included under business liabilities or is the loan brought in via the shareholder loan account. The line of credit is not pledged to the business
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07-09-2015, 09:23 AM
Post: #2
RE: Personal line of credit
On the corporation's financials, the shareholder's loan is a debt of the business under Advances From Shareholder.

On the personal balance sheet or net worth statement of the shareholder, the utilized LOC is a liability pledged against personal assets, and the money advanced to the corporation is a loan receivable.
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