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PARTNERSHIP CASH CALLS
A partnership cash call is where the partners of a partnership wish to increase the amount of cash in the business without adding to the debt of the business.
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 form.
To do this, each partner introduces capital to the partnership via their capital accounts and this money can be raised via individual loans for each partner. Because the loan is in the name of the partner, the debt does not appear on the partnership’s balance sheet.
This is an ideal way for small and medium size partnerships to improve cashflow WITHOUT increasing the Business gearing.
Cash calls can be for any amount from £5,000 - £150,000 per partner and are usually totally unsecured and can be repaid over one to five years.
The proceeds of the loan can be paid directly in to the partnership if required and payments can be made from the partnership’s bank account. These repayments are then classed as part of the partner’s drawings. Interest may be claimable against taxable profits.
Cash calls allow total flexibility for partnerships particularly if one or more partners has ready capital available but others do not and require to borrow the money.
Complete our
form.
All quotations are given with no obligation and enquiries are treated in the strictest of confidence.
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