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hello my name is Professor Brett Davies Im a barrister and solicitor at legal consolidated congratulations you are on your way of building your loan agreement well whats whats a loan agreement well someone owes you some money and you should properly document it well well I dont want to document the loan agreements between a friend or someone between a related party well lets say that loan agreement is between you and the company so you are going to lend some money to your company such as that private and proprietor limited company that can also build an incorporated on our law firms website the Australian Taxation Office our friends at the ATO have said that if you dont have a properly drafted loan agreement or you cant provide evidence that youve lent money to the company then the our friends at the ATO will declare that you didnt lend the money to the ATO you put the money into the company as equity which means you cant get it back out very easily so if you are going to len