Investment by Director Loan

Guys,

Those who are looking to transfer funds from personal account to business account to claim investment points, here is information for you. This is absolutely acceptable investment by UKBA.




Below are references from UKBA and Link and the link itself.




Director’s loan
This only applies to migrants who become directors of a company. A director’s loan to the
company will be considered for the award of points as long as it is unsecured and
subordinated in favour of third-party creditors.

For the purposes of this guidance an unsecured loan is where the applicant has loaned
money to the business that is not secured by property or assets that become subject to
seizure on default. (Third-party creditors are those individuals or companies that the
business owes money to, not including the applicant.)



A loan to the business will not be accepted
The investment must not be in the form of a director’s loan, unless it is unsecured and
subordinated in favour of third-party creditors. The Home Office will use any legal agreement
between the applicant and the company to assess this.

If no legal agreement is provided or if the investment appears to be in the form of a loan
which does not meet these conditions, you must award no points for this investment.



The money must be used in the business to encourage growth or expansion, to improve
services or products and to make sure the business is profitable. Director’s loans however
are permitted to remain in a bank account, provided the loan is not called in.



Link for all above informtion:

https://www.gov.uk/government/uploads/s ... .0_EXT.pdf

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.

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.

thanks for sharing this nice info. cheers