Features of an interest-free loan between enterprises

Often friendly, trusting relationships arise between enterprises, as a result of which one company can provide loans without interest for use, in other words, interest-free loans. From the legislative side, such assistance is not prohibited, but it may attract close attention from tax authorities and additional audits.

For an interest-free loan, an agreement must be signed, in which one of the points should be the main condition: the loan is issued free of charge, without fees for the use of funds. If this condition is not specified in the document, the Central Bank refinancing rate will automatically be included. In cases where the object of the loan is not money, but things, the loan will be interest-free by default.

If money is lent for the first time to an enterprise with which there has been no cooperation before, then signing an agreement should be the main condition, otherwise there is a high chance of not getting your money back. The agreement may not be notarized, but must have an exact expiration date. If the funds are not returned by the specified date, the creditor can legally go to court for proceedings.

What it is?

In accounting, a posting is an entry in a journal or computer about transactions carried out during a certain period. Accounting entries are recorded as a credit to one account and a debit to another. Companies can charge interest on issued loans; it is based on the profit accounting method.

The loan can also be interest-free, as decided by the loan officer. The Civil Code has a special chapter that describes the issuance procedure. For example, such an action must be recorded.

The lender gives the borrower a specified amount of funds or some things, and the borrower must pay back the amount or give things back in the same condition and quality.

The signed agreement must include the following points:

• Loan rate (if any).
• Return period.
• What is the return procedure?
• If the loan percentage is not written in the agreement, or it is not written there that the agreement is interest-free, then the amount of the interest will be determined at the NPL rate.

The loan size can be any, there are no restrictions on this.

Accounting for interest-free loans issued

Example 3

Let's consider the conditions from example 2, and assume that the agreement provided for the issuance of an interest-free loan.

Then the lender’s postings will look like this:

March 1

Dt 76 Kt 51 - issuance of an interest-free loan of 3,000,000 rubles.

The next and last entry in the lender's accounting will be entry Dt 51 Kt 76 (it will appear on the day the loan is repaid).

IMPORTANT! Loans issued on interest-free terms are not financial investments for the lending company (clause 2 of PBU 19/02), since the essential condition for recognizing assets as such is not met: their ability to generate income. At the same time, a loan issued that includes interest will be considered as such (clause 3 of PBU 19/02).

In the lender's reporting, the loan issued will be reflected in line 1230 “Receivables”. In this case, the organization can detail the type of receivables in the balance sheet: short-term debt with a maturity of 12 months or less and long-term debt with a maturity of more than 12 months.

Read how to account for an interest-free loan issued to an employee here.

Postings for issuing a loan

Interest accrued on loans is the company's profit. The company itself determines whether this is income from ordinary activities or other credits.

If interest is a regular source of income, it is classified as income from ordinary activities. The choice should be recorded in the accounting policy.

In order to apply for a loan, the following conditions must be met:

• Have an agreement confirming that the company can make financial investments.
• Make a transfer to the company of monetary risks, which is associated with the provision of credit funds, because there can be many different cases, for example, unreliability of the client.
• The company's ability to generate economic benefits.

Interest-bearing loans must be reflected only as part of cash deposits. It is reflected by special postings, which depend on the subject of the loan. Loans issued by transactions of this type are reflected as follows: Debit 58-3 Credit 51.

The size of the interest-bearing loan is calculated using the assets and their prices that are given to the borrower.

To the employee

The boss can issue an interest-free loan to his employees. At the same time, payment for it can be deducted from your salary. For example, when signing an agreement, simply write down how much will be withdrawn from your salary and for how long.

Upon issuance, the company must certainly inform the tax service about this. After all, in this situation the company is a tax agent.

Accounting for such loans is shown in account 73-1 “Calculations for loans granted”. On the debit of account 73.1 - registration of a loan, on a credit - return. Interest accruals are recorded on the same account.

If an employee is given a loan without interest or at a rate less than 2/3 of the refinancing rate, then the employee receives a material benefit in the form of savings on interest. The company, as a tax agent, will be required to deduct tax and transfer it to the budget at a rate of 35%.

When applying for a loan to employees, the manager must take into account all the nuances:

• The agreement must be in writing.
• It is imperative to indicate the date from which the agreement will come into force.
• The amount given by the company is also specified in the agreement. There are no restrictions on it, but if it exceeds 25% of the price of the property, then in order to formalize this amount of funds as a loan, a board of directors must be assembled to confirm the action.
• The loan is issued only in rubles.
• The loan can be provided with or without interest at the discretion of the lender.
• The loan period must be specified in the document. If it is not there, then the funds will have to be repaid within a month, after the creditor’s request.
• The agreement can also stipulate the possibility of repaying the loan ahead of time.
• It is necessary to describe the purpose of the employee receiving the loan.
• It is necessary to indicate exactly how the employee will repay the loan and how he will withdraw it.

To the founder of the LLC

What should you know to apply for a loan from the founder? Typically, when applying for this type of loan, there is one person between the founder and the borrower. After all, every businessman wants to develop his company. And sometimes you can’t get a loan from a bank.

In this situation, one person from the business community applies for a loan. Other participants decide that the funds should be returned to the creditor with a profit, but since this is impossible at that time, his payment is increased every month, reducing it for himself. This is just one possible way out of the situation.

Usually there is a meeting of community members, they decide how to reimburse their borrower for financial assistance. The practice of signing this type of agreement between the founder and the LLC is quite common. Such loans are issued both with and without interest, it all depends on the resolution of the council.

Funds lent to a company by one of its directors are not subject to income tax.

In order to avoid future problems with the tax service, the following clauses must be written in the agreement::

• Applying for a loan without interest.
• If the help is with interest, then you should definitely write it down.
• The agreement must be concluded in rubles.
• The head of the organization can conclude such a document with himself. It is legal.

How to get an interest-free loan urgently on a card, cash, account, Qiwi-wallet, YuMoney

Not every microfinance organization offers free microloans. Their appearance in the product line indicates the company's desire to attract new borrowers. Citizens of the Russian Federation who are able to fulfill the lender’s requirements can apply for an interest-free non-targeted loan with receiving money on a card, cash, account, Qiwi-wallet, YuMoney, through Contact and Zolotaya Korona, urgently without long waits.

These include:

• permanent registration;
• possession of a passport;
• compliance with the established age (in all MFOs no younger than 18 years);
• Availability of a mobile phone and email.

The card also needs to meet several criteria. The card is personalized and must belong to the client himself. It can be credit or debit, but it must be active and have a positive balance. MFOs work with cards that support PS MIR, Visa and MasterCard. The owner needs to be prepared for the verification procedure associated with establishing the ownership of the payment instrument by the potential borrower.

Video: Determining financial results

Another organization

As in other situations, there are some peculiarities here. All of them must be stated in the agreement, which must be in writing.

Loans can be with or without interest. In that situation, if the loan has interest, it should certainly be reflected as part of financial deposits.

Here you need to make the following entries:

• The loan is issued by this posting: Debit 58-3, Credit 51.
• Interest is accrued monthly and is reflected in the following entries: Debit 76, Credit 91-1.
• There is also a posting Debit 50 Credit 76, which indicates the interest accrued for the use of credit money.

Read the article about what ]Globus Leasing offers[/anchor]. About preferential leasing. More details here.

How to reflect issued loans and borrowings in accounting?

Accounting for loans issued is regulated by PBU 19/02 “Accounting for financial investments”.

To reflect loans in accounting, the lender uses account 58 “Financial investments”.

Example 2

The organization issued a loan on March 1 for a period of 1 year. Loan amount - RUB 3,000,000. The interest rate on the loan is 15% per annum. In accordance with the terms of the agreement, the borrower pays interest for each day of use of the loan at the end of each month. Interest begins to accrue from the day following the day the loan is issued. The Agreement does not provide for partial repayment of the loan amount on a monthly basis.

In October the lender reflected:

March 1

Dt 58 Kt 51 - loan issuance - 3,000,000 rubles.

March 31

Dt 76 Kt 91.1 - interest accrued: 3,000,000 / 365 × 30 × 15% = 36,986.30 rubles.

Dt 51 Kt 76 - interest received from the borrower - RUB 36,986.30.

Postings in April:

April 30

Dt 76 Kt 91.1 - interest accrued for April: 3,000,000 / 365 × 30 × 15% = 36,986.30 rubles.

Dt 51 Kt 76 - interest received - RUB 36,986.30.

Postings in May:

May 31

Dt 76 Kt 91.1 - interest accrued: 3,000,000 /365 × 31 × 15% = 38,219.18 rubles.

Dt 51 Kt 76 - interest was credited to the current account - RUB 38,219.18.

...and so on until February 28 of the next year.

The lender will reflect the loan amount in the balance sheet on line 1170 “Financial investments” in the amount of RUB 3,000,000.

Posting accrued interest

Under the cash method, interest is calculated on the day the loan is issued. This is reflected by posting Debit 76, Credit 91-1. When accounting for interest using the accrual method, you should pay attention to the period for which the loan was issued under the agreement.

Interest on loans is calculated according to the formula:

Principal loan amount x rate per year: 365 (366) x number of calendar days of the period (for example, month)

Interest may also be a fixed amount, which is specified in the agreement.

If the lending period exceeds a year, interest is accrued at the end of each month until the end of the period during which the agreement to provide money is valid. When issuing a loan for a period of less than a year, interest is calculated on the final day when it must be returned to the lender.

For an example of accounting entries, let's take the following data:

• One company received a loan from another in the amount of 2 million rubles.
• Period from September 30 to December 31.
• At an interest rate of 14.5% per year.

Accounting entries

How to get an interest-free loan instantly before your payday

Becoming the owner of a microloan for which you do not have to pay interest is the dream of many borrowers. This is a good way to intercept money before payday without involving relatives and friends to solve problems. If everything goes well, just 10-15 minutes after completing the application, you can become the owner of a small amount.

However, these financial products have features that are useful to know for users of microfinance organizations. The main one is related to the one-time provision of such a benefit. Starting from the second loan from the same company, you will need to pay interest on an equal basis with everyone.

Other product features include:

• there is no fee for the use of money only if the funds are returned within the prescribed period, if there is a delay, the preference becomes unavailable;
• the number of offers on the market is limited;
• Some companies have a high percentage of refusals for interest-free loans.

There are microfinance organizations that offer a second loan for free, but the repayment period for such an offer is only a few days.

To take advantage of a free consultation from a qualified specialist and get answers to your questions, go to the official website of the selected financial institution, find and fill out the form (Name and phone number). They will call you back and advise you within 10 minutes.