Confusions about mode of investment

[tierloop]

Hello Everyone and all the gurus and moderators,

I have concern about mode of investment and to claim points for investment.

My T1E visa was granted on basis of 3rd party funds and 3rd party is based in overseas.

Once visa was granted I deposited the 50K funds in 4 transactions into my business account via cash deposit instead of account transfer from 3rd party account to my business account in order to save foreign exchange charges.

My concern is if I go for extension so

-Would it effect the decision of my case as the funds are directly deposited into business account instead of 3rd party transfer.

-Does the director loan applies in such scenario. Can I create a director loan.

-Which box or boxes should I tick in section 3 , K3

I would appreciate your views on it.
Thanks

[marcnath]

What was the basis for your 50K route - PSW ?

[tierloop]

What was the basis for your 50K route - PSW ?

Yes

[marcnath]

Then you did the right thing - the money needed to be transferred from your personal account, which is what you did.
It can be either DL or share capital - up to you.
So, you would check box 2 or 3 + 5

[tierloop]

I did hard cash deposit via payin slip into my business account. I think I was not able to explain clearly that it was not account transfer ,neither from 3rd party or neither from my personal account.

[marcnath]

I did hard cash deposit via payin slip into my business account. I think I was not able to explain clearly that it was not account transfer ,neither from 3rd party or neither from my personal account.

In that case, the best is to do it as Share capital. Otherwise you will not be able to provide the evidence needed for DL

[tierloop]

I appreciate your response but If you could kindly explain how it’s not possible via DL

[marcnath]

I appreciate your response but If you could kindly explain how it’s not possible via DL

Read the documents needed as set out in the guidance.
If you have made the investment in the form of a director’s loan, it must be shown in both the relevant set of financial accounts provided and through readily identifiable transactions in the applicant’s business bank statement(s). The statement(s) must clearly show the transfer of this money from you to your business.

[tierloop]

Unfortunately I have submitted the application with DL. So it means everything is messed up.
Isn’t there any way to justify those.

[marcnath]

When did you submit the application. Your initial question seemed to indicate that it was before submission.

What does the bank statement say against the deposits ? Does it show your name ?

Do you still have copies of the pay-in slip ?

[tierloop]

The question was just in the form of query in order to get memebers views on such scenarios.

I have submitted application in Sept 2017.
Awaiting decision since that time.

Deposit was made with reference of 3rd party supporter name on pay in slip hence Bank statements show name of 3rd party supporter against deposit.
I have customer’s part of pay-in slip that is stamped by bank.

[marcnath]

And in whose name is the Director Loan agreement drawn up ?

[tierloop]

Directer loan is under my name as I am the sole director of the company. That’s what my lawyer advised me

[Faheemryk]

After reading posts on this forum, I have realised that Share Capital option is much much better than DL.

[marcnath]

Directer loan is under my name as I am the sole director of the company. That’s what my lawyer advised me

Ok. That's good.
So that leaves you with the non-compliance of showing that money was invested by you into the business.
The probability of your investment being rejected is quite high. Not sure what you could do at this point in time. You may want to take some professional advice.
The right way to handle it was to have the money put into your personal bank account and then transferred from there.
When you initially applied for your Visa, the third party funding only showed that someone else was going to give you the money or invest it on your behalf. By depositing the money into the business account with the name of the 3rd party, it is not as clear that the money was given to you.

[tierloop]

Directer loan is under my name as I am the sole director of the company. That’s what my lawyer advised me

Ok. That's good.
So that leaves you with the non-compliance of showing that money was invested by you into the business.
The probability of your investment being rejected is quite high. Not sure what you could do at this point in time. You may want to take some professional advice.
The right way to handle it was to have the money put into your personal bank account and then transferred from there.
When you initially applied for your Visa, the third party funding only showed that someone else was going to give you the money or invest it on your behalf. By depositing the money into the business account with the name of the 3rd party, it is not as clear that the money was given to you.

I don’t get that part of “non-compliance of showing that money was invested by you into the business.”
I know it’s a blunder but money is deposited into business account as cash and later it was utilised as investment so wouldn’t that be justifiable?

[marcnath]

I don’t get that part of “non-compliance of showing that money was invested by you into the business.”
I know it’s a blunder but money is deposited into business account as cash and later it was utilised as investment so wouldn’t that be justifiable?

The requirement that the source of the investment should be traceable to the entrepreneur is a recent one. Couple of years back just the DL agreement and accounts was sufficient.
Difficult to say why the immigration rules were amended to include the requirement for "readily identifiable transactions" came. But the fact that it was amended to specifically include that makes me think that some people used it inappropriately.
The challenge you have is not whether the money was invested but whether it was your money. It is supposed to be your money and that is the part you don't have evidence to support.
I am not sure why you used the 3rd parties name in the pay-in slip. It should have been your name.

[tierloop]

I used 3rd party name as a reference in my own business account pay in slip. But I understand it’s an issue to justify the deposit even it’s made by me with 3rd party name as reference.
Well I really appreciate your views on it.
Let’s see what happens. All I can do is hope for best and pray that they don’t go in such deep about origin of investment otherwise I am in great mess.

[CULLINAN]

I used 3rd party name as a reference in my own business account pay in slip. But I understand it’s an issue to justify the deposit even it’s made by me with 3rd party name as reference.
Well I really appreciate your views on it.
Let’s see what happens. All I can do is hope for best and pray that they don’t go in such deep about origin of investment otherwise I am in great mess.

Since you already have done it, just hope for the best! I have seen many people with a very weak case getting approved, on the contrary people with strong cases getting refused too.
You might get lucky!
Goodluck!

[tierloop]

Thanks

[marcnath]

Thanks

All the best. I do hope it gets through.

[Saeedjansaeed]

Hi
As far as i know through my case the investment is only counted whatever is gone from your personal account to your business account, thats the only way it is called as director loan and also this is the only way it is acceptable by HO. Cash submission into your business account is not counted as director loan or investment..
Hope this helps