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Director Loan Agreement

Only for UK Tier 1 (Entrepreneur) points system. This route is now closed to new applicants.

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mahi007
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Director Loan Agreement

Post by mahi007 » Sun Mar 02, 2014 4:16 am

Hi Guyse
I have applied business visa on the basis that some of funds have already been invested and remaining are in my account.
I provided purchase invoices of business assets as well as business bank statements to show funds are invested into my company. Home Office has send me an email asking for if i have a director loan agreement.

Can any one tell me do i need this director loan agreement even though i have already supplied proof of investment into business i.t equipment and furniture.

Also can any one share a sample director loan agreement. please help me as i have to give itto home office in 3 days
Thanks

aniz6
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Re: Director Loan Agreement

Post by aniz6 » Tue Jan 12, 2016 1:41 pm

dear sirs,
urgent help,,, i need to back date an director loan agreement given to my company to the total amount , 109,311.40 ,,, i am not getting any interest and the repayment will be done after 5 years. my accountant dont know how to do it and how to show its ok that company fails to pay it after 5 years

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zimba
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Re: Director Loan Agreement

Post by zimba » Wed Jan 13, 2016 12:25 pm

aniz6 wrote:dear sirs,
urgent help,,, i need to back date an director loan agreement given to my company to the total amount , 109,311.40 ,,, i am not getting any interest and the repayment will be done after 5 years. my accountant dont know how to do it and how to show its ok that company fails to pay it after 5 years
I get the impression that you think director's loan can be drafted by your accountant but that is not true. A loan agreement is a legal document drafted by you (or your solicitor) between you and your company based on all the terms you want like duration, repayment plan, interests, ..etc.
You let your accountant know about the loan when he wants to prepare your accounts. He simply reflects this on your balanced-sheet under 'creditors' section, showing that the company is in debt.
Advice is given based on my personal research and experience only. Do NOT contact me via private message for immigration advice

helpingperson
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Re: Director Loan Agreement

Post by helpingperson » Fri Jan 29, 2016 8:33 pm

zimba88 wrote:
aniz6 wrote:dear sirs,
urgent help,,, i need to back date an director loan agreement given to my company to the total amount , 109,311.40 ,,, i am not getting any interest and the repayment will be done after 5 years. my accountant dont know how to do it and how to show its ok that company fails to pay it after 5 years
I get the impression that you think director's loan can be drafted by your accountant but that is not true. A loan agreement is a legal document drafted by you (or your solicitor) between you and your company based on all the terms you want like duration, repayment plan, interests, ..etc.
You let your accountant know about the loan when he wants to prepare your accounts. He simply reflects this on your balanced-sheet under 'creditors' section, showing that the company is in debt.
Hello

What if you have already submitted 2 years accounts and have no director loan agreement? If we form director loan agreement now, back date it but where in accounts we will show as accounts are already submitted?

Thank you.

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zimba
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Re: Director Loan Agreement

Post by zimba » Mon Feb 01, 2016 11:48 am

helpingperson wrote: What if you have already submitted 2 years accounts and have no director loan agreement? If we form director loan agreement now, back date it but where in accounts we will show as accounts are already submitted?

Thank you.
Draft the loan agreement with that date you transferred the money. Your accounts just need to show your name as a creditor of that money.
Advice is given based on my personal research and experience only. Do NOT contact me via private message for immigration advice

helpingperson
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Re: Director Loan Agreement

Post by helpingperson » Tue Feb 02, 2016 5:29 pm

We transferred £200k in bits. 2 years accounts already submitted. I see most of seniors are saying here that director loan should be formed before transfers made so basically in advance. My questions are below.

Can we backdate director loan as have not gone one?
How and where we show in accounts as 2 years account already submitted?

thank you.

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zimba
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Re: Director Loan Agreement

Post by zimba » Wed Feb 03, 2016 9:53 am

helpingperson wrote:We transferred £200k in bits. 2 years accounts already submitted. I see most of seniors are saying here that director loan should be formed before transfers made so basically in advance. My questions are below.

Can we backdate director loan as have not gone one?
How and where we show in accounts as 2 years account already submitted?

thank you.
Director's loan agreement needs to be drafted before transfer like any other loan you apply for. I would say no one stops you to date it back though.
You also had to read the guide and immigration rules to see what HO requires from you before investing money and filing accounts. Ideally your loan amount has to be under creditors section of your accounts under your name.
Advice is given based on my personal research and experience only. Do NOT contact me via private message for immigration advice

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