Director's loan agreement / -please read and approve

HI,
as many of you guys here are experts in tier 1 entrepreneur support. i am attaching unsecured director's loan agreement below.


please let me know if it is ok or we need to add more stuff into it?


Director Loan Agreement
Date: 22.09.2015
This is a legal Agreement between mr abc and mr xyz (as directors) and xxxxxxxxx company ltd. where mr abc and xyz have provided a sum of £50,000 as a loan to the company.
2-Terms of the Loan
The Loan is provided on basis of following terms
A-loan will be sum of £50,000 will be provided to make purchases for the business.
B-loan will be used for company expenses and business development.
C-Loan will interest free and the Lenders will not charge any interest on outstanding amount. D-Loan is for the period of 10 years and will be repayable in 60 equal payments commencing after 5 years, i.e. 21 September 2020 of £833.33 (Each Repayment) at monthly intervals. 3-Security
This is unsecured loan and none of the company (business) asset/equipment or property is secured against this loan. Furthermore The Company is free to use all its assets and the lenders cannot hold in respect of the lender of any kind and there would be no charge on assets or property of the company.
4-Third-Party Creditors
The loan is subordinated in the favour of third-party creditors, in the case of company become insolvent this loan will not be repaid until all other creditors have been paid in full and this loan will the last liability to be discharge.
5-Drawdown
The Company (the Business) can withdraw loan whenever required and free to use loan for the development of the business.
Signed For and on Behalf of the Directors
abc(The Director) _____________________ Date____________ xyz (The Director) _____________________ Date____________

Hi Ibbi87

I'm not having a go at you or saying you are doing the wrong thing but in MY opinion, it's things like this that make the Home Office change rules and policy.

I take it you are on the £50,000 T1 route?

If that is the case then this directors loan looks very suspicious and a blatant abuse of a facility that is meant to help genuine entrepreneurs.

You want to give your business a £50,000 loan where the repayments will start after 5 years??? anything to do with ILR??
Directors loans in MY opinion are where you setup a business, invest £35,000 into that business and if the business does not require any additional funding you can give the business the additional £15,000 as a directors loan to make the T1 criteria. To show that you have invested the full £50,000.

If you are to give your business the full £50,000 as a directors loan to me this is highly suspicious and does not in my opinion show any REAL investment in a business.

Apologies again but i am NOT having a go at you

Hi AAna,
I wan to extension tier 1 ente..PSW route £50k.
Can i do/show any business or not but i don't undestand level 4 bussiness
my job title is bussines development manager.I have off licence and 2fulltime staff worked at the movement .I got visa 2014 before april.
Pls help me or reply me anyone for my extension

hi anna
the loan is unsecured and is subordinated in the favour of third-party creditors.
which means a lot.
it mean that if company has other 3rd party creditors lenders etc or liabilities. the company should pay them first then if there is money left it will be returned to the director.
unsecured directors loan is valid form of investment.
and as long as your genuine entrepreneur suspicion raise on me.
i am qualified electrical engineer with masters degree from one of the world top 50 universities with distinction on scholarship. And cisco qualified networking engineer.
and unlike many people i am not doing cash in hand work whereas running the business. paying taxes and vat etc.
so its unfair to just start accusing someone of abusing home office policies.
unsecured directors loan is valid form of investment accepted by home office as well as any legal entity.

Hi Ibbi87

I did not accuse YOU of doing anything untoward or abusing home office policy.
I know exactly what a Directors Loan is, i have 3 in place for each of my limited companies and i have also written a few posts in these forums advising that a Directors loan is a valid form of investment.

How you run your business and handle your accounts is entirely up to you but surely if your paying taxes and are VAT registered then you should have at least an office, which would need equipment and furnishings??? The business would also have advertised so this money should be shown as investment rather than the full £50k through a directors loan, this is my point.

Congratulations on the award of your MBA from one of the top 50 universities in the world , i can only point towards my own MBA in business management from Edinburgh University which is only in the top 20 universities in the UK but they do teach attention to detail, with this in mind, my screen name is AANA.. not anna

Salim

Dear Ibbi87,

Looks like you have a full proof plan for your T1 extension, but I have question(s) for you and may be your reply would help me as well.

By the way of Director's Loan, you are sorted with the investment requirement, but how would you show the job creation? I am also interested to know what is the nature of your business? If you don't mind telling this!

Thanks

Hello Everyone,

If any of you want an Official/Professional Director's Loan Agreement, please feel free to contact me on Amanda@britainiaservices.com

We provide Templates of Director's Loan Agreements for a very small fee. We can also prepare the agreement for you if you wish.

AANA wrote:Hi Ibbi87

I did not accuse YOU of doing anything untoward or abusing home office policy.
I know exactly what a Directors Loan is, i have 3 in place for each of my limited companies and i have also written a few posts in these forums advising that a Directors loan is a valid form of investment.

How you run your business and handle your accounts is entirely up to you but surely if your paying taxes and are VAT registered then you should have at least an office, which would need equipment and furnishings??? The business would also have advertised so this money should be shown as investment rather than the full £50k through a directors loan, this is my point.

Congratulations on the award of your MBA from one of the top 50 universities in the world , i can only point towards my own MBA in business management from Edinburgh University which is only in the top 20 universities in the UK but they do teach attention to detail, with this in mind, my screen name is AANA.. not anna

Salim

well i mistyped your user id, and i apologise for that.
i did not say i have done MBA.
I have done Masters in Electronics Engineering -/
decide yourself...

I wish you all the best

your agreement cover all the necessary requirements. you should be fine with this . when is your visa extension due ?