Two Businesses

[alijafri]

Hi All.

Firstly, I am new to this forum hence might not be fully aware of rules so pardon me for that in advance.

My Tier 1 Entrepreneur First Extension (£200k route) is due this week. I own 2 businesses - One is consulting (which i showed at the time of initial application).There isnt much banking on it anymore as I have been involved in my other business lately. Other one is Trading business which is fully active and doing okay.

I have two questions:

1. Since i established first business within 3 month of entering (May14) - Can I claim establishing points for this business ? And rest of the points for other business.
2. My 200k investment is in the other business. I would like to claim investment, job creation points on second business. - Is that possible.

Crux - Can I claim points (of claim attributes) - from different companies/businesses ? i.e investment and job creation on one company and business establishment on the other ?

Appreciate your help in advance.

[marcnath]

Hi All.

Firstly, I am new to this forum hence might not be fully aware of rules so pardon me for that in advance.

My Tier 1 Entrepreneur First Extension (£200k route) is due this week. I own 2 businesses - One is consulting (which i showed at the time of initial application).There isnt much banking on it anymore as I have been involved in my other business lately. Other one is Trading business which is fully active and doing okay.

I have two questions:

1. Since i established first business within 3 month of entering (May14) - Can I claim establishing points for this business ? And rest of the points for other business.
2. My 200k investment is in the other business. I would like to claim investment, job creation points on second business. - Is that possible.

Crux - Can I claim points (of claim attributes) - from different companies/businesses ? i.e investment and job creation on one company and business establishment on the other ?

Appreciate your help in advance.

Yes to all of your questions. You can claim for either or a mix of them.

I showed investment in two different companies for my extension - was a mix of shares and director loan.

For my ILR, job creation was from one of the companies I had used for investment evidence and another job from a third company that I had invested in but had not used as evidence for invesment

So no issues

[alijafri]

Hi Marcnath

Much appreciate your help. You are a star.

Also,

1. do I need to provide audited accounts for both of them ?

2. Whats the best way to tell them which business I am using to claim those points ? A covering letter or they can establish themselves using documents I provide ?

[marcnath]

Hi Marcnath

Much appreciate your help. You are a star.

Also,

1. do I need to provide audited accounts for both of them ?

2. Whats the best way to tell them which business I am using to claim those points ? A covering letter or they can establish themselves using documents I provide ?

1. Audited accounts are a requirement for investment evidence, so you only need to provide it for the company that you are using for that.
2. You can refer to it in the cover letter but I organised all the documents into separate sections, one each for each of the attributes. So it was clear to the Cw which documents were applicable to which attribute

[alijafri]

HI ..Thanks for help.

ALso need help from you, Zimba, CR00 and other moderators on below query

Pardon me if I have missed response on these question on previous threads.

I have few questions related to Directors loan. I came to UK in 2014 and made first investment in 2015 October and completed investment in March 2017.

1. Does the Director loan agreement have to be on legal paper ?
2. DOes it have to be attested from solicitor or can simply be on one plain paper with only one sign of myself. ?
3. What date do i need to have on the agreement ?
4. The director loan amount reflects against my name in accounts so thats not a problem. However please guide me what amount do I have to write on agreement ? Does it have to match the amount on accounts ?
5. If that date on agreement has to be when I made the first transfer, how is it possible to write before hand that I am loaning out 229,000 amount of money and that matches the accounts as well......you know what i mean

[marcnath]

The guidelines very clearly set out what is needed in the DL document.

And you are right - most of these questions have been answered elsewhere.

HI ..Thanks for help.

ALso need help from you, Zimba, CR00 and other moderators on below query

Pardon me if I have missed response on these question on previous threads.

I have few questions related to Directors loan. I came to UK in 2014 and made first investment in 2015 October and completed investment in March 2017.

1. Does the Director loan agreement have to be on legal paper ?

No

2. DOes it have to be attested from solicitor or can simply be on one plain paper with only one sign of myself. ?

Any agreement needs two parties - you (Director) as the lender and your company as the borrower.
So, it needs two signatures, one for each party.
Both signatures can be the same person - you.
It can be on plain paper

3. What date do i need to have on the agreement ?

It does not matter. But it is logical that the agreement will be dated at least on the date of your first transfer.

4. The director loan amount reflects against my name in accounts so thats not a problem. However please guide me what amount do I have to write on agreement ? Does it have to match the amount on accounts ?

The only requirement is that the Director Loan is for a minimum of 200,000 and your accounts should show a minimum of 200,000. Again,for immigration rules purposes, it does not need to match. But, I am sure your accountant will insist that it does if he is a decent accountant.

5. If that date on agreement has to be when I made the first transfer, how is it possible to write before hand that I am loaning out 229,000 amount of money and that matches the accounts as well......you know what i mean

Again, this would have nothing to do with your application. HO cares only about two things.
1) That the DL is from you - so the accounts and the business bank statements have to show that
2) That the loan is unsecured and subordinated - so you need a Loan agreement
As long as both of these are greater than 200K, that meets the needs.


The rest is all about legal things that don't concern UKVI

If you draw up a loan agreement for 229K, it does not mean you are transfering 229K. It only means that you have promised the company to give it 229K
However, if you want to have an agreement that is "nice" legally, you can do an agreement for 229,000 and include a sentence that says, "The loan can be drawn down in instalments as required"

You are also free to do separate loan agreements for each transfer - your choice.

[alijafri]

Hi Marcnath.

Cant thank you enough for advice. A few more leading questions.

1. Can you point me in right direction for any previous leads of a decent Directors Loan agreement format?

2. I have almost 20 transactions of director loans transfer of avg £10k each (personal to business). They cant fit on page 42 alone. I hope we are allowed to attach a separate sheet with table 3b1 ?

3. Is it a good idea to attach a detailed covering letter for my application ? I am doing it without solicitor so think it might bring all documents into perspective.

4. As for job creation - I have all documents. However two employees started on 01/01/16 but we started submitting FPS/RTI only from April 16. So is what do I write as job creation date. ? 12 months from April onwards ?

5. Both of them are still on job. So in application form page 46, in date post created tab, do I write 01/01 or 01/04 (when we started sending FPS) ?

6. On same page 46, what are the start and end dates tabs in table ? (both are still in job) so are these start and end dates of claim period ?

7. What goes in column 2 (start date with your business) of same page 46. Is it start date of job or claim preiod start date ?

Might be a very basic questions - but dont want to mess it up when I have a chance to make it correct with your advice.

Thanks in advance

[marcnath]

Hi Marcnath.

Cant thank you enough for advice. A few more leading questions.

1. Can you point me in right direction for any previous leads of a decent Directors Loan agreement format?

This forum has a good search option - search for director loan agreement template. I am going to have to do the same

2. I have almost 20 transactions of director loans transfer of avg £10k each (personal to business). They cant fit on page 42 alone. I hope we are allowed to attach a separate sheet with table 3b1 ?

Yes

3. Is it a good idea to attach a detailed covering letter for my application ? I am doing it without solicitor so think it might bring all documents into perspective.

Yes

4. As for job creation - I have all documents. However two employees started on 01/01/16 but we started submitting FPS/RTI only from April 16. So is what do I write as job creation date. ? 12 months from April onwards ?

Which question are you talking about ?
If you only have documents from Apr 16, obviously you can only claim the jobs from Apr.

5. Both of them are still on job. So in application form page 46, in date post created tab, do I write 01/01 or 01/04 (when we started sending FPS) ?

Job creation date is any date before the start date of the 1st employee who has filled the job.

6. On same page 46, what are the start and end dates tabs in table ? (both are still in job) so are these start and end dates of claim period ?

Your start date entered in the table has to be the same as in the FPS.
For end date, you can just write "continuing" or something like that.

7. What goes in column 2 (start date with your business) of same page 46. Is it start date of job or claim preiod start date ?

The form is clear - it has to be filled "(if this differs from start date in job)".

Might be a very basic questions - but dont want to mess it up when I have a chance to make it correct with your advice.

Thanks in advance

[alijafri]

Thanks again for your quick responses on matter.

Following up on this, I have few more questions:

1. I have a business premises that I have on sublet and i run a motor showroom on it. I only have a 3 page management/sublet contract on it but do have all business rates, utilities on my name. Just to show I am a genuine entrepreneur (and yet not to make it too complicated) , is it okay to submit agreement and business rates bill and utilities bill or only business rates bill and utilities can suffice ?

2. For maintenance, do I have to provide separate bank statements for my depndents as well ?

3. Should I provide all 2-3 years business bank statements ? Or only month of investment (with date of investment) bank statement is okay ?

4. I did investment from personal bank to business in quite a few transactions over 2 years (as earlier mentioned) is that something to be concerned about ?

5. For all investment transactions, I had a reference on bank saying 'investment - business name' . Didnt say director loan. Hope that is okay as well ?

6. Someone recommended me providing a solicitor style cover letter with clauses on it and my points scoring against them (like a 6 pager). I dont think case officers have that much time on hand - would like to keep it simple as I know I am a genuine entrepreneur - in which case should a simple 2 pager cover letter (with detail of docs provided against each attribute) suffice ?

7. Do I have to provide my VAT returns as well while I have provided all unaudited accounts already ?

8. I have tried to pay my PAYE liability on time however missed a few in mid. But then made a plan with hmrc to cover it. Is that a red flag ?

Thanking you in advance.

[marcnath]

Thanks again for your quick responses on matter.

Following up on this, I have few more questions:

1. I have a business premises that I have on sublet and i run a motor showroom on it. I only have a 3 page management/sublet contract on it but do have all business rates, utilities on my name. Just to show I am a genuine entrepreneur (and yet not to make it too complicated) , is it okay to submit agreement and business rates bill and utilities bill or only business rates bill and utilities can suffice ?

The genuine entrepreneur test is very subjective. I think it wasn't really introduced to evaluate your entrepreneurship capability (doubt if CW has the competence for it) but is there really to weed out people who were misusing this route by just showing money, hiring people, etc.

What I am getting to is that you don't have to complicate it. In my case, I did not provide any evidence documents for this at all. I just pointed out a few things in my cover letter such as the fact that I was part of the UKTI's GEP program, I had couple of patents and had raised external investment, etc. Obviously, the CW was convinced.

Generally, if the documents you have to provide anyway - business statements, FPS, etc. reflect the business activity, that should be sufficient.
The best supporting documents for this would be regular customer and supplier transactions that are spread over a lengthy period - those are not easy to manufacture and should be good enough evidence.

2. For maintenance, do I have to provide separate bank statements for my depndents as well ?

No, as long as you have the funds for yourself and your dependants in the one account

3. Should I provide all 2-3 years business bank statements ? Or only month of investment (with date of investment) bank statement is okay ?

Just the ones that show the investment.

4. I did investment from personal bank to business in quite a few transactions over 2 years (as earlier mentioned) is that something to be concerned about ?

No

5. For all investment transactions, I had a reference on bank saying 'investment - business name' . Didnt say director loan. Hope that is okay as well ?

Is this the reference on you Business Bank statements ?The requirement is that your name must be against each of the transaction in the Business bank statements. It looks like your name is not there - that is an issue since HO wants to confirm that the money was from you (or on your behalf).
This would probably mean that you will need to also submit the corresponding statements from your personal bank account to show that it corresponds. And clarify that in the cover letter.

6. Someone recommended me providing a solicitor style cover letter with clauses on it and my points scoring against them (like a 6 pager). I dont think case officers have that much time on hand - would like to keep it simple as I know I am a genuine entrepreneur - in which case should a simple 2 pager cover letter (with detail of docs provided against each attribute) suffice ?

Fully support your approach

7. Do I have to provide my VAT returns as well while I have provided all unaudited accounts already ?

No.

8. I have tried to pay my PAYE liability on time however missed a few in mid. But then made a plan with hmrc to cover it. Is that a red flag ?

Thanking you in advance.

Unlilkely since you have already rectified it. The condition is that you should have done things lawfully and the corrections should help with that.

[alijafri]

Hi Marcanath

Thank you....you were super fast there and quite clear.

Very very relieved with all these points. thats what i thought, key is in clarity and simplicity.

1. As for business reference, the transactions on my business bank statements DO clearly mention my name S A A Jafri (in short obviously) in the title of transaction from my personal acc with sub reference saying 'investment - business name" - but it does not say director loan in ref.

Hope that is okay? If so, should i still submit my tons of personal banking statements as well ?

2. Coming back to director loan agreement, i have yet invested 229,650 from my personal to business account. This exact amount shows against my name in unaudited 2 years accounts. Should I draft a director loan agreement of 220,000 or 230,000 ? means more than transfered or less. which is proper approach ?

3. Do I have to provide my Personal tax returns as well ?

Thanks

[alijafri]

Marcnath

4. In addition to above, do I need to tell why I have two businesses and why I am claiming points in two business ? Do I need to put explanation in cover letter for the above as to why I didnt invest in business 1 which I created in year 1 and didnt actively run later - and later started another business where investment was done ?

[marcnath]

Hi Marcanath

Thank you....you were super fast there and quite clear.

Very very relieved with all these points. thats what i thought, key is in clarity and simplicity.

1. As for business reference, the transactions on my business bank statements DO clearly mention my name S A A Jafri (in short obviously) in the title of transaction from my personal acc with sub reference saying 'investment - business name" - but it does not say director loan in ref.

Hope that is okay? If so, should i still submit my tons of personal banking statements as well ?

That is perfect. Don't think there is a need for personal bank statements

2. Coming back to director loan agreement, i have yet invested 229,650 from my personal to business account. This exact amount shows against my name in unaudited 2 years accounts. Should I draft a director loan agreement of 220,000 or 230,000 ? means more than transfered or less. which is proper approach ?

Only the amount in the DL will be counted for investment. I would go for the higher number (which is what your accountant should recommend as the money has to be accounted somehow)

3. Do I have to provide my Personal tax returns as well ?

Thanks

No

[marcnath]

Marcnath

4. In addition to above, do I need to tell why I have two businesses and why I am claiming points in two business ? Do I need to put explanation in cover letter for the above as to why I didnt invest in business 1 which I created in year 1 and didnt actively run later - and later started another business where investment was done ?

No

[alijafri]

Hi Marcnath

Thanks again. Step by step I am getting to final shape of my application.

For transfer, I used 1 personal bank HSBC - only myself holderr) for £30k and another £200k (my Natwest).

One shows name S A Jafri on trnsactions. Other shows my full initial name S A A Jafri.

Is that okay or I am complicating/thinking too much ?

[marcnath]

Hi Marcnath

Thanks again. Step by step I am getting to final shape of my application.

For transfer, I used 1 personal bank HSBC - only myself holderr) for £30k and another £200k (my Natwest).

One shows name S A Jafri on trnsactions. Other shows my full initial name S A A Jafri.

Is that okay or I am complicating/thinking too much ?

Yes, you are complicating/thinking too much

[alijafri]

Hi Marcnath

Thats true.

Coming to final section, which is helping my case to prove I am a genuine entrepreneur, I am planning to send few sales invoices, few purchases invoices (local & import as I buy cars from UK & Japan both) (5 each covering a year), business rates bill, utility bill, Insurance copy (business, employer liability), my membership with RMI (Retail Motor Industry), website and autotrader/ebay/motors screen shots.

Is that a healthy proof. ?

[alijafri]

And since I own a car show room, should I also submit retail premises pictures ?

[marcnath]

Hi Marcnath

Thats true.

Coming to final section, which is helping my case to prove I am a genuine entrepreneur, I am planning to send few sales invoices, few purchases invoices (local & import as I buy cars from UK & Japan both) (5 each covering a year), business rates bill, utility bill, Insurance copy (business, employer liability), my membership with RMI (Retail Motor Industry), website and autotrader/ebay/motors screen shots.

Is that a healthy proof. ?

That seems like more than healthy proof. Again, I can't speak on behalf of the CWs, but I think that should be more than enough. Add pictures if you want, but not really necessary.

[alijafri]

Hi Marcnath

I dont know if my next questions step on the fine line that exists between being careful & Paranoid

1. My banking is quite alot because of my business. WHen i submit my bank statements for proof of incoming investment, should I only send the exact page of bank statement that shows my transaction from that month - or the full month bank statement. Dont mind sending entire thing - just that it will literally be 100's of pages of bank statement only.

2. Should I write a support declaration for my dependents that I am providing maintenance etc and attach with application ?

3. What support documents do dependents need ? (Marriage certificate for Wife, and Birth certificate for Daughter - only 2 months old) thats what I have.

thanking in advance

[marcnath]

Yep - you continue to be paranoid

Hi Marcnath

I dont know if my next questions step on the fine line that exists between being careful & Paranoid

1. My banking is quite alot because of my business. WHen i submit my bank statements for proof of incoming investment, should I only send the exact page of bank statement that shows my transaction from that month - or the full month bank statement. Dont mind sending entire thing - just that it will literally be 100's of pages of bank statement only.

I would include only the pages with the investments.

2. Should I write a support declaration for my dependents that I am providing maintenance etc and attach with application ?

Not needed - if you are having a section for that attribute, then it becomes clear it is for all the three of you.

The rules allow for "Where the applicant is applying as the Partner of a Relevant Points Based System Migrant the relevant amount of funds must be available to either the applicant or the Relevant Points Based System Migrant."

3. What support documents do dependents need ? (Marriage certificate for Wife, and Birth certificate for Daughter - only 2 months old) thats what I have.

thanking in advance

Since this is an extension, you don't need to provide the marriage cert again. Birth cert for your daughter - yes.

[alijafri]

Hi Marcnath

Thank you for your responses. You continue to be super helpful and a savior.

Some questions have risen following my discussion with a solicitor (I am applying without a solicitor - went there to have a second opinion on my application) So please dont take me wrong, I am not trying to question anyones authority - just trying to have a first hand opinion of expert moderators here.

1. I have personal bank statements directly (to show maintenance) directly from HSBC which I demanded over the phone. They sent me statements - while they are from bank, it says 'Duplicate' on top. Is that not acceptable to Home Office ?

2. I got my visa stamped before April 1 2014 (dated 01/03/14) but came to UK in May 2014. Will the pre April rules for Job creation be applicable on me or post April ?

3. Both employees worked continuous 12 months. However one employee had a pay rise mid year (same job though - increased responsibilities) & which obviously shows on accountant letter and on the employment sheet of application form as well. I however have been suggested by the Solicitor to explain sudden payrise mid year as this might raise suspicion. Is it the case ?

4. As I mentioned earlier, I setup one business as soon as I came to the UK in May 2014 (Company A). This is a consulting business which is still active but I realised later I cant prove my investment in this as it was more of services related work. I later opened a motor business in May 2015 (company B) and the first investment came in this company in Oct 2015 all the way to last bit of £200k investment in March 2017. There was a delay in investment obviously. Again - according to solicitor I need to explain this delay in investment, probably in my cover letter. Whats the more popular opinion and whats your suggestion on the matter ?

5. Subsequent to above, according to clause 141 of policy guidance, "We recognise that, as an entrepreneur, you may have moved on to other activities and no longer be involved in the business in which you initially invested, but we still require this evidence to show that the money was invested"
In light of this, Solicitor said, I still have to submit accounts of my company A even if no investment was done in it. Whats the more popular opinion and whats your suggestion on the matter ?

6. He also mentioned that I still have to submit my personal bank statements as proof of transfer is not only business bank but also personal bank that shows source. Confused on this one really as policy says Business bank only.

7. He suggested investment by Share Capital is more of a reliable way of investment than Director Loan. Whats your opinion on it ?

Thanking you again for your responses.

[marcnath]

Hi Marcnath

Thank you for your responses. You continue to be super helpful and a savior.

Some questions have risen following my discussion with a solicitor (I am applying without a solicitor - went there to have a second opinion on my application) So please dont take me wrong, I am not trying to question anyones authority - just trying to have a first hand opinion of expert moderators here.

1. I have personal bank statements directly (to show maintenance) directly from HSBC which I demanded over the phone. They sent me statements - while they are from bank, it says 'Duplicate' on top. Is that not acceptable to Home Office ?

That should not be a problem. The requirement is that "All statements must be on the bank’s stationery, unless you are submitting electronic statements." And if they sent it to you, I am pretty sure it meets that criteria.

2. I got my visa stamped before April 1 2014 (dated 01/03/14) but came to UK in May 2014. Will the pre April rules for Job creation be applicable on me or post April ?

The cut off date is based on the date of application, not the visa grant date - so yes, you qualify for the transitional rules.

3. Both employees worked continuous 12 months. However one employee had a pay rise mid year (same job though - increased responsibilities) & which obviously shows on accountant letter and on the employment sheet of application form as well. I however have been suggested by the Solicitor to explain sudden payrise mid year as this might raise suspicion. Is it the case ?

I can't see why it would raise any suspicion. You are not getting any advantage for your application from paying a higher salary.
By the way, you don't need an accountant's letter as it is a new business and not an existing business you joined.

4. As I mentioned earlier, I setup one business as soon as I came to the UK in May 2014 (Company A). This is a consulting business which is still active but I realised later I cant prove my investment in this as it was more of services related work. I later opened a motor business in May 2015 (company B) and the first investment came in this company in Oct 2015 all the way to last bit of £200k investment in March 2017. There was a delay in investment obviously. Again - according to solicitor I need to explain this delay in investment, probably in my cover letter. Whats the more popular opinion and whats your suggestion on the matter ?

Even if you had put in all your investment on the last day before you apply, as long as you provide the documentation, the CW has to award you points. Otherwise you can challenge it in the Administrative review.
The only clear reason the CW can deny giving you the points once you provide the evidence documentation is if they believe you have provided fraudulent documents.
The timing of the investment is not a criteria.
However, do note that a condition of your grant of the Visa was that you should have had continuous access to the 200K you showed at the application. I haven't seen this mentioned as an issue in this forum. But, if the CW has any concerns about the delay in investment, they can ask you to prove that you continued to have access to the funds throughout i.e from April 14 to October 15. But because this is not to do with the points for extension, you are not required to provide any evidence of that in the extension application.

5. Subsequent to above, according to clause 141 of policy guidance, "We recognise that, as an entrepreneur, you may have moved on to other activities and no longer be involved in the business in which you initially invested, but we still require this evidence to show that the money was invested"
In light of this, Solicitor said, I still have to submit accounts of my company A even if no investment was done in it. Whats the more popular opinion and whats your suggestion on the matter ?

If you are not claiming for investments in company A (which you are not), there is no need for accounts of that company.

6. He also mentioned that I still have to submit my personal bank statements as proof of transfer is not only business bank but also personal bank that shows source. Confused on this one really as policy says Business bank only.

This is something I have seen other members in this forum also say. Generally, the guidelines are very detailed. So, I believe that if it is not specified there, it is not needed. Again, the CW can come back to you and ask for those documents, but I am of the opinion they cannot deny you points for not submitting those.

7. He suggested investment by Share Capital is more of a reliable way of investment than Director Loan. Whats your opinion on it ?

Thanking you again for your responses.

Most people seem to have been doing DL here. I personally had a combination - one business as shares, the other was DL. It just doesn't matter. The documentation is lesser when investing as shares (no bank statements and loan agreement needed ) but it is your choice.

You have got some conflicting opinions here and you may get more from other members. At the end of the day, you need to make the decision since no one can definitely say what a CW would do.

[alijafri]

Hi Marcnath

I have pretty much exhausted my questions now, well I think so apart from a few

1. I found one DL agreement on forum and it has one term on it as

"This agreement commences from the start of Accounting Period of the Company. The Lender & Company may terminate the loan agreement at any time with mutual consent of both the parties except for payment due to third party/parties creditors of Company prior to date of such terminations. "

Is this clause okay ? As in the Start of agreement and the termination ?

2. Again, I came from outside the UK on Tier 1 Ent Visa and invested my personal money in business. How will they (UKVI) know its my personal money that I invested if I dont send my personal bank statements. ?

Obviously my business bank statements are there, DL agreement is there, unaudited accounts show my name against the DL. IS that really it ?

[marcnath]

Hi Marcnath

I have pretty much exhausted my questions now, well I think so apart from a few

1. I found one DL agreement on forum and it has one term on it as

"This agreement commences from the start of Accounting Period of the Company. The Lender & Company may terminate the loan agreement at any time with mutual consent of both the parties except for payment due to third party/parties creditors of Company prior to date of such terminations. "

Is this clause okay ? As in the Start of agreement and the termination ?

Honestly, I don't understand the language of the last part of that clause so I am not going to be able to comment.

But, more generally, the key thing is to make sure the points mentioned in the guidelines are covered in the agreement and that there is no other clause that then contradicts those points.

2. Again, I came from outside the UK on Tier 1 Ent Visa and invested my personal money in business. How will they (UKVI) know its my personal money that I invested if I dont send my personal bank statements. ?

Obviously my business bank statements are there, DL agreement is there, unaudited accounts show my name against the DL. IS that really it ?

I think UKVI looks at this as two separate things:
- They evaluate that you had 200K of your own money during your initial application (obviously you satisfied that)
- Then they make sure that, at extension, there is 200K in your name that has gone into the business

There is no requirement that these two have to be exactly the same - in fact it may be onerous. For example, you may have moved some of the money to a better interest earning account while waiting for your business to really need the money. So they can't expect that it will still be from the same source.