Business loan term

Dear all,

I have a question about the Business loan term. They are 5 years on the agreement. If the business owner repays a little money, such as 10,000 or 20,000 pounds, within three years, does it meet the visa renewal requirements?

Thank you for your time.

Kind regards

H

HH-HH wrote: ↑

Mon Jan 30, 2023 10:37 am

Dear all,

I have a question about the Business loan term. They are 5 years on the agreement. If the business owner repays a little money, such as 10,000 or 20,000 pounds, within three years, does it meet the visa renewal requirements?

Thank you for your time.

Kind regards

H

Strictly speaking it does. But it is not advisable to pay back the Director loan until you get your ILR in order to avoid the risk of that being deducted from your investment.

Thank you for your quick reply.

All investment funds have been spent. Then the business owners gave me a little money, and it was from the investment funds stated on the business account.

So, I am a little worried about that.

Kind regards

H

HH-HH wrote: ↑

Mon Jan 30, 2023 12:45 pm

Thank you for your quick reply.

All investment funds have been spent. Then the business owners gave me a little money, and it was from the investment funds stated on the business account.

So, I am a little worried about that.

Kind regards

H

This would need a more specific look. But your statement seems to indicate that the investment funds were returned which could then be deducted from your investment amount.

Thank you for your reply.

I've been thinking about this a lot and researching bills. The bill does not require companies to hold investment funds for how many years or to maintain investment funds at the agreed amount in the agreement. The requirement in the bill is that the investment must be completed (according to the specified time and method). I have indeed completed it, and the investment funds have been spent (this can be evidenced by the bank statement), so the part of principal is repaid after the investment funds are spent.

Have you ever met this situation and is this going to be a renewal issue? My documents has been submitted, can you give me some advice? Thank you very much.

Kind regards

H

HH-HH wrote: ↑

Wed Feb 01, 2023 8:31 am

Thank you for your reply.

I've been thinking about this a lot and researching bills. The bill does not require companies to hold investment funds for how many years or to maintain investment funds at the agreed amount in the agreement. The requirement in the bill is that the investment must be completed (according to the specified time and method). I have indeed completed it, and the investment funds have been spent (this can be evidenced by the bank statement), so the part of principal is repaid after the investment funds are spent.

Have you ever met this situation and is this going to be a renewal issue? My documents has been submitted, can you give me some advice? Thank you very much.

Kind regards

H

I haven't seen anyone specifically having gone through this. Whenever the question has been raised, the general suggestion has been not to repay the Director loan until the ILR (or at least until extension). And most people appear to have followed that.

As I stated in my initial reply, a strict reading of the rules sets it out exactly as you state.
In fact, if you transfer money into the business bank account as a Director loan and then have the business repay the entire Director loan back the next day, it would still meet the criteria.
Obviously, that makes no sense in terms of the broad criteria for the entrepreneur visa.
Remember that there is a criteria that any renumeration for the Entrepreneur will be deducted from the investment value. There is nothing that will stop HO from interpreting that repayment as renumeration. And if they do that, you will have to ready to go to court and fight it. You may or may not win but you will incur significant costs.
But more importantly, you mentioned the "owners" decided to pay you. That indicates you are the owner, which can easily raise the question about you being a genuine entrepreneur. Most entrepreneurs tend to be owners of their business. So, it is in your best interest to avoid anything that will want the case worker to look at things in more detail