The partner current account is an internal lending mechanism: a partner makes funds available to their company without going through a capital increase. These amounts are recorded in account 455 of the accounting plan (“Partners – Current Accounts”) and constitute a debt of the company to the lending partner. The distinction from a capital contribution is structural, as the partner current account does not confer any additional voting rights and remains repayable according to the agreed terms.
Banking monopoly and legal exception: the often misunderstood framework
Lending money on a regular basis is an activity reserved for credit institutions. Any advance granted by a partner to their company could therefore, in theory, conflict with the banking monopoly.
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Article L.511-6 of the Monetary and Financial Code provides an explicit exception: partners and shareholders can grant current account advances to the company in which they hold shares, without being considered as exercising a regulated credit activity. This exception also covers the company’s managers, even if they are not partners.
The question of who can open a partner current account thus directly depends on this text. An employee who is not a partner can also grant a one-off advance, provided it is motivated by a direct economic interest (such as securing their job) and remains occasional.
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For legal entities that are partners and subject to banking regulations (credit institutions, financing companies), the situation is more constrained. The ACPR monitors these intra-group operations and treats them as regulated credit operations as soon as they become habitual and remunerated. Prudential ratios then normally apply.
Authorized persons according to the form of company
The rules vary significantly from one legal form to another. In a SARL, only partners and managers (even non-partners) can fund a partner current account. The circle is the same in an EURL, where the sole partner often holds both roles.
In joint-stock companies (SAS, SASU, SA), the scope expands to include shareholders and corporate officers. A SASU president who is not a shareholder retains the ability to lend funds to their company through this means.
For SCIs, any partner can grant advances. This mechanism is particularly common for financing works or bridging a cash flow deficit between two rent calls.
- SARL and EURL: partners and managers, including non-partner managers
- SAS, SASU, SA: shareholders and corporate officers (president, managing director)
- SCI: all partners, without restriction related to the status of manager
- Non-partner employees: one-off advance allowed under strict conditions (direct economic interest, non-habitual nature)
Validity conditions of the partner current account
A partner current account cannot be debtor in SARLs and joint-stock companies. In practice, the company cannot lend money to its partners through this channel. This prohibition aims to protect the share capital and creditors. Only SCIs and certain partnerships allow, under conditions, a debtor balance.
The current account agreement is not mandatory, but it is strongly recommended. It sets out the terms of remuneration, the repayment period, and any blocking clauses.
Remuneration and deductible interest rate
The interest paid to the lending partner is deductible from the company’s taxable income, but within a limit set each year. The maximum deductible rate is indexed to the average effective rates practiced by credit institutions for variable-rate loans to companies with a duration exceeding two years.
Beyond this ceiling, the excess portion of the interest is not deductible and constitutes an expense reintegrated into the taxable income. For deductibility to apply, the company’s share capital must be fully paid up.
Full release of capital: a prerequisite often forgotten
This condition is regularly overlooked in recent companies. If the subscribed capital is not fully paid, no interest paid on partner current accounts is fiscally deductible, regardless of the rate applied. The company can still pay interest, but it bears the cost without any tax advantage.
Repayment of the partner current account: rights and limits
The partner holding a current account is a creditor of the company. They can, in principle, request repayment at any time, except for blocking clauses provided in the agreement.
Blocking clauses set a minimum duration during which the funds remain available to the company. They are common when the company’s bank requires a strengthening of quasi-equity before granting a loan. Blocked current accounts also appear on the balance sheet in a separate section, improving the financial reading of the company by third parties.
In the event of collective proceedings (rehabilitation or judicial liquidation), the repayment of the partner current account comes after privileged creditors. The lending partner is treated as an unsecured creditor, meaning they only recover their funds after the payment of employees, the public treasury, and creditors with security interests.
The risk of non-repayment clearly distinguishes the partner current account from a traditional bank investment. This reality weighs particularly heavily in small structures where cash flow remains tight.
One last point to keep in mind: amounts left in a current account without a written agreement are presumed to be lent free of charge. Without stipulation of interest, the partner receives no remuneration, and the company has no interest expense to account for.