the loan would not affect the profits, only to the extent of the non-calculation of interest on this loan, so if the rate should have 10% then interest for the year of 10k should have been recorded by your company for which you would be entitled to 1k of, the thing to ask about is what if the loan is non-recoverable, and no recourse, tehn your profits would be down by 100k, and hence loose you 10k. Is there any relationship between the 2 companies, subsidary or something, in which case intercompany transactions would be permitted, and could be non interest bearing.