Question
How can I set up a Division 7A loan on NowInfinity?
Answer
On our platform, we provide the following:
- The Division 7A Loan Agreement
- The Drawdown Acknowledgment for Div 7A Loan
Here is a checklist for the information required in filling out the form: Division 7A Loan Agreement: Ordering checklist
First, you would complete the Division 7A Loan Agreement document form.
Step 1. Fill in Lender Details
Step 2. Complete Borrower Details
Step 3. If you are not 100% confident/comfortable in using this form or understanding the document, or you are not engaging your own solicitor for their review, you may want to consider adding on legal review to your order. For further information, refer to: Client Legal Review FAQs
Step 4. Presentation - NowInfinity provides you with two add-on options for ordering a hard copy version of the document: Slimline or Binder.
For further information, see here.
Secondly, you would use the Drawdown Acknowledgment service to specify the details of each drawdown/amount lent.
Step 1. Fill in Lender Details
Step 2 Fill in the Borrower Details
Step 3 Fill in the Loan Details, including whether it is a secured or unsecured loan ('Loan Type')
Step 4. If you are not 100% confident/comfortable in using this form or understanding the document, or you are not engaging your own solicitor for their review, you may want to consider adding on legal review to your order. For further information, refer to: Client Legal Review FAQs
Step 5. Presentation - NowInfinity provides you with two add-on options for ordering a hard copy version of a document: Slim-line and Hard-Copy.
For further information, see here.
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Note Our platform currently allows only for single borrowers (i.e. one Division 7A loan per borrower) as this is considered to be best practice due to the obligations imposed by Div7A (that apply to each borrower separately). If, however, you have joint borrowers (i.e. jointly holding shares in the company and ASIC records show that they are joint shareholders) and would like the Div7A document to reflect this, then reach out to legal@nowinfinity.com.au for assistance. |
Further Information
A general overview of Division 7A
Where can I enter the loan amount and date when completing a Div 7A loan agreement?
How to process a secured loan that allows 25 years loan term