Director Loan ????

[imran10]

Hello Guys,

I heard so many times about director loan agreement, what is that and how it can help to our business?
i am not clear, is that the agreement if we get loan from the bank for the business purpose?

Thanks

[siavashes]

Hello Guys,

I heard so many times about director loan agreement, what is that and how it can help to our business?
i am not clear, is that the agreement if we get loan from the bank for the business purpose?

Thanks

NO,

please read all other topics rg director loan + policy guidance ...

this website is not 118, its designed for people who need real help...

[sagareva]

[quote="imran10"]Hello Guys,

I heard so many times about director loan agreement, what is that and how it can help to our business?
i am not clear, is that the agreement if we get loan from the bank for the business purpose?

Thanks[/quote]


its a way of investing your money in your company
nothing to do with actually GETTING money from anywhere

[asfan123]

Hello Guys,

I heard so many times about director loan agreement, what is that and how it can help to our business?
i am not clear, is that the agreement if we get loan from the bank for the business purpose?

Thanks

Hi,

Let me explain u in simple words... Your company is considered as a separate entity (person). When u transfer (invest) money into your business in any form physical assets or cash (business account), then you claim your investment in company in form of signing a contract (Director Loan Agreement) with the company that you have granted a loan to the business (company). The loan agreement states the terms of loan such as loan date, date of loan return and return on loan etc.

Then in company balance sheet appears as "Non Current Assets + Current Assets = £50'000" and at liability side as "Share Capital (if any shares issuesd) + Loan = £50,000"

Hope this help