Failure to implement this relatively simple document can have costly consequences for the taxpayer and the business if the ATO has distributed profits disguised as loans. Our Division 7A credit agreement has been developed by our in-house legal experts and covers both unsecured secured loans and 25 years. It also allows a certain number of credits to be settled over time by a credit agreement. If a Division 7A credit agreement is not correct for your circumstances, please see our template for a loan agreement. Our Div7A Corporate Credit Agreement formalizes the agreement between the parties and has been designed by a specialized attorney to ensure compliance with Section 109N of the ITAA. Our 7A Company Loan Agreement division meets the requirements of the ATO and allows you to properly document your loan. The ATO made it perfectly clear that whenever a company lends money to its directors or shareholders, these loans must be in writing and approved by the company and the borrower. If you have a compliant credit agreement, this component calculates the following: Note: The term should be 25 years (if the loan is fully secured by a real estate mortgage) or 7 years (if the loan is not secured). LVDox™ draft Division 7a loan agreement of LegalVision provides that if there is a Division 7A loan agreement between a private company and a shareholder or shareholder, the terms of the loan agreement deny the operation of Division 7A. 3. Make sure the loan does not exceed the maximum term of both: 2. .