Tier 1 Entreprenuer Already Invested

[zeeshanzaheer]

Is it possible to apply Tier 1 Entrepreneur -Initial application on the basis the money is already invested in the existing business in the following category

Director’s loan

If the applicant has made the investment in the form of a director’s loan, it must be shown in the relevant set of accounts provided, and the applicant must also provide a legal agreement, between the applicant (in the name that appears on the application) and the company.

This agreement must show:
• the terms of the loan
• any interest payable
• the period of the loan, and
• evidence to show the loan is unsecured and subordinated in favour of third-party
creditors.

If the information provided does not clearly show the loan is unsecured and subordinated in favour of third-party creditors, you cannot accept the loan for the award of points.

Subordinated loans are ones, which rank after other debts should a company fall into liquidation or bankruptcy.

[educators]

Is it possible to apply Tier 1 Entrepreneur -Initial application on the basis the money is already invested in the existing business in the following category

Director’s loan

If the applicant has made the investment in the form of a director’s loan, it must be shown in the relevant set of accounts provided, and the applicant must also provide a legal agreement, between the applicant (in the name that appears on the application) and the company.

This agreement must show:
• the terms of the loan
• any interest payable
• the period of the loan, and
• evidence to show the loan is unsecured and subordinated in favour of third-party
creditors.

If the information provided does not clearly show the loan is unsecured and subordinated in favour of third-party creditors, you cannot accept the loan for the award of points.

Subordinated loans are ones, which rank after other debts should a company fall into liquidation or bankruptcy.

Yes possible

[zeeshanzaheer]

my friend is Director of an existing company.
He is applying for Tier 1 Entrepreneur on the basis that he has funds invested £200,000 as already investment in the form of Director's Loan to the company.everything seems alright .
But only one confusion that we could not establish that if my friend can be a director of existing company where company has 2 mother directors (instead of his personal company) and still he is the lender and providing company £200,000.
is there any restriction to claim points for funds invested in existing business with 2 other directors.?????????