Putting Personal Money into Your Business! Loan vs Investment

[Chris Walters]

Hi everyone,

Can anyone please provide advice as to whether it is best to put your personal funds into your company as a Loan or an Investment? I read a lot about the topic. Just to put you in context, this would be for a corporation based in Montreal (Quebec). I am aware that a loan can be better in the sense that you become a creditor if anything goes wrong, whereas an investment shareholder will lose anything that would be put in (once again, in the case where everything goes left).

I am thinking of loaning a large sum to my own corporation, but I was wondering if there would be any disadvantages when comes time for my corporation to get financing from a financial institution.

I am aware that laws vary from one area to another, therefore, all advices will be appreciated, and those from fellow Quebecers even more.

Thank you for your time and consideration,

Chris