Shareholder current account
What is a shareholder current account, and why does a lender check it?
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BY MICHAEL SHANG · SIXTEEN YEARS IN COMMERCIAL BANKING · UPDATED
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A shareholder current account records money moving between a private company and its owners: salary and drawings taken, personal costs the company has paid, funds the owners have put in. Overdrawn, it means the owners owe the company, and that asset may be worth little if they cannot repay; in credit, it is the owners' money in the business, and a lender may want it postponed behind the bank. Either way, its movement shows how much cash the owners actually take out.
BASIS Practitioner judgment from sixteen years in commercial banking, set out in How Bankers Think (Highbank Press, 2026). Every borrower on this site is a composite constructed for teaching, not a client. The market is mid-market commercial lending as practised in New Zealand and Australia; where a convention differs elsewhere, the page says so.
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