Debt in order to exit a Shareholder
Hi everyone,
I have a company form by two shareholders (I'm one of them) is it possible to borrow debt through the company (which just have a working capital credit) in order to pay my partner shares?
Thanks all
Theoretically yes but practically speaking probably hard to borrow that level of debt unless it's a pretty low negotiated buyout price.
Yes, simply put upstream loans are a thing. However there are potentially tax consequences which will vary from jurisdiction to jurisdiction.
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