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Director's Loan agreement and Fund transfer

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

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Nana51113
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Director's Loan agreement and Fund transfer

Post by Nana51113 » Sun Dec 16, 2018 6:33 pm

Dear All ,

Please i am wondering if any one could kindly help with the Director loan agreement template?

if i did invest into the company in different dates should i make one loan agreement to show the breakdown or several loan agreement for each date ?

Who should sign the agreement?
Many thanks

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marcnath
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Re: Director's Loan agreement and Fund transfer

Post by marcnath » Sun Dec 16, 2018 6:44 pm

Do not tag your questions to other people's posts. I have split it now
My comments are in no way meant to be advisory. I have no professional knowledge of immigration. These are based on my own experience, convictions and personal interpretation of publicly available information.

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marcnath
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Re: Director's Loan agreement and Fund transfer

Post by marcnath » Sun Dec 16, 2018 6:48 pm

1. Did you try searching this forum ?
2. How you do the agreement and how many of them is entirely up to you
3. The lender and the borrower need to sign it.

These are not immigration rules related issue. Talk to your accountant or lawyer
My comments are in no way meant to be advisory. I have no professional knowledge of immigration. These are based on my own experience, convictions and personal interpretation of publicly available information.

Nana51113
Junior Member
Posts: 64
Joined: Mon Dec 10, 2018 8:16 am

Re: Director's Loan agreement and Fund transfer

Post by Nana51113 » Sat Dec 22, 2018 7:53 pm

Hi ,

I am new to this forum and do know how it works , is there any notification I will receive to e-mail when someone response?

Could you please advice if I need to ask about how to show my name as creditors in the accounts? Because my accountant is not quite sure how to do that?

Nana51113
Junior Member
Posts: 64
Joined: Mon Dec 10, 2018 8:16 am

Re: Tier 1 Entrepreneur Extension refused due to investment is not showing in accounts

Post by Nana51113 » Sat Dec 22, 2018 8:50 pm

Dear all,

I will be grateful if you please can explain in details where exactly to show the director loan into accounts?

What about if I did transfer money directly from my personal account into business account of 50K but I did spent lots of expenses for the business from my personal account like 20K will the HO calculate it like 50K or 70K ?

Should the accounts explain the direct transfer as 50K and expenses from personal account is 20K ?

How and where to explain that please help?

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marcnath
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Re: Director's Loan agreement and Fund transfer

Post by marcnath » Sat Dec 22, 2018 9:40 pm

Nana51113 wrote:
Sat Dec 22, 2018 7:53 pm
Hi ,

I am new to this forum and do know how it works , is there any notification I will receive to e-mail when someone response?

Could you please advice if I need to ask about how to show my name as creditors in the accounts? Because my accountant is not quite sure how to do that?
You should normally get an email notification if you get a response. But check your notifications settings (top left side of this page) to confirm what events you get email for.

The requirement is that your name and the amount should be in the Accounts in some form. Generally, most accountants add in the Notes section of the accounts.
My comments are in no way meant to be advisory. I have no professional knowledge of immigration. These are based on my own experience, convictions and personal interpretation of publicly available information.

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marcnath
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Re: Tier 1 Entrepreneur Extension refused due to investment is not showing in accounts

Post by marcnath » Sat Dec 22, 2018 9:47 pm

Nana51113 wrote:
Sat Dec 22, 2018 8:50 pm
Dear all,

I will be grateful if you please can explain in details where exactly to show the director loan into accounts?

What about if I did transfer money directly from my personal account into business account of 50K but I did spent lots of expenses for the business from my personal account like 20K will the HO calculate it like 50K or 70K ?

Should the accounts explain the direct transfer as 50K and expenses from personal account is 20K ?

How and where to explain that please help?
If your investment is by DL, then HO will expect to see the transfers unless there is a very good reason for not showing that - for example, if it was spent before you opened the business bank account.

But the easier way is to show those expenses as Share Capital, so you don't need the bank statements.
My comments are in no way meant to be advisory. I have no professional knowledge of immigration. These are based on my own experience, convictions and personal interpretation of publicly available information.

Nana51113
Junior Member
Posts: 64
Joined: Mon Dec 10, 2018 8:16 am

Re: Director's Loan agreement and Fund transfer

Post by Nana51113 » Sat Dec 22, 2018 10:27 pm

Dear marcnath,

Thank you for your response

The investment of 50K are very clear under my name from personal account to business account

But now I got the draft from my accountant and he did mention that director loan is 58K when I did ask him why is that he said because you did transfer 50K into your business bank from your personal bank

And the 8k you have made expenses for the company like all costs so the total is 58K

My question now how will the home office calculate the investment will they calculate it like 50K OR 58K?

And what should the accountant do now should he mention that 50K are direct transfer and 8k are expenses?

Please help I really feel confused

Nana51113
Junior Member
Posts: 64
Joined: Mon Dec 10, 2018 8:16 am

Re: Director's Loan agreement and Fund transfer

Post by Nana51113 » Sat Dec 22, 2018 10:36 pm

I am sorry if I am not explaining it clearly , so the 50K are coming directly under my name from my personal account to business account

But there is 8K which has been spent into the business from my personal account and this has been calculated as expenses in the profit and loss sheet this money spent on rent , utility, travel , equipments , etc

My question is how the HO will calculate the investment is it 50K OR 58K please advice

Nana51113
Junior Member
Posts: 64
Joined: Mon Dec 10, 2018 8:16 am

Re: Director's Loan agreement and Fund transfer

Post by Nana51113 » Sun Dec 23, 2018 12:41 am

One more question please is that possible to get salary a director from my company ?

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marcnath
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Re: Director's Loan agreement and Fund transfer

Post by marcnath » Sun Dec 23, 2018 7:18 am

Nana51113 wrote:
Sat Dec 22, 2018 10:27 pm
Dear marcnath,

Thank you for your response

The investment of 50K are very clear under my name from personal account to business account

But now I got the draft from my accountant and he did mention that director loan is 58K when I did ask him why is that he said because you did transfer 50K into your business bank from your personal bank

And the 8k you have made expenses for the company like all costs so the total is 58K

My question now how will the home office calculate the investment will they calculate it like 50K OR 58K?

And what should the accountant do now should he mention that 50K are direct transfer and 8k are expenses?

Please help I really feel confused
Did you not see my earlier reply?
My comments are in no way meant to be advisory. I have no professional knowledge of immigration. These are based on my own experience, convictions and personal interpretation of publicly available information.

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marcnath
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Location: Milton Keynes

Re: Director's Loan agreement and Fund transfer

Post by marcnath » Sun Dec 23, 2018 7:19 am

Nana51113 wrote:
Sun Dec 23, 2018 12:41 am
One more question please is that possible to get salary a director from my company ?
Yes, but the salary drawn may be deducted from the investment amount
My comments are in no way meant to be advisory. I have no professional knowledge of immigration. These are based on my own experience, convictions and personal interpretation of publicly available information.

Nana51113
Junior Member
Posts: 64
Joined: Mon Dec 10, 2018 8:16 am

Re: Director's Loan agreement and Fund transfer

Post by Nana51113 » Sun Dec 23, 2018 8:51 am

Dear marcnath,

Thank you for your response

The investment of 50K are very clear under my name from personal account to business account 

But now I got the draft from my accountant and he did mention that director loan is 58K when I did ask him why is that he said because you did transfer 50K into your business bank from your personal bank 

And the 8k you have made expenses for the company like all costs so the total is 58K

My question now how will the home office calculate the investment will they calculate it like 50K OR 58K?

And what should the accountant do now should he mention that 50K are direct transfer and 8k are expenses? 

Please help I really feel confused
Did you not see my earlier reply?
No sorry I did not see your reply ? Could you please write it again ?

My accountant is saying all money you have paid from your personal account to the business is calculated in the expenses is this correct ? Or he should add them as well to the 50K which has been transfered directly from my personal account to the business account?

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marcnath
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Location: Milton Keynes

Re: Director's Loan agreement and Fund transfer

Post by marcnath » Sun Dec 23, 2018 9:29 am

Nana51113 wrote:
Sun Dec 23, 2018 8:51 am
Dear marcnath,

Thank you for your response

The investment of 50K are very clear under my name from personal account to business account 

But now I got the draft from my accountant and he did mention that director loan is 58K when I did ask him why is that he said because you did transfer 50K into your business bank from your personal bank 

And the 8k you have made expenses for the company like all costs so the total is 58K

My question now how will the home office calculate the investment will they calculate it like 50K OR 58K?

And what should the accountant do now should he mention that 50K are direct transfer and 8k are expenses? 

Please help I really feel confused
Did you not see my earlier reply?
No sorry I did not see your reply ? Could you please write it again ?
Can't you just scroll up in the page ?
Nana51113 wrote:
Sun Dec 23, 2018 8:51 am


My accountant is saying all money you have paid from your personal account to the business is calculated in the expenses is this correct ? Or he should add them as well to the 50K which has been transfered directly from my personal account to the business account?
This is an immigration forum. Your question is about accounting - trust your accountant or go to another accountant to confirm
My comments are in no way meant to be advisory. I have no professional knowledge of immigration. These are based on my own experience, convictions and personal interpretation of publicly available information.

Nana51113
Junior Member
Posts: 64
Joined: Mon Dec 10, 2018 8:16 am

Re: Director's Loan agreement and Fund transfer

Post by Nana51113 » Sun Dec 23, 2018 12:42 pm

I do trust my accountant my inquiry about the immigration rules I have no problem with my accounts the only thing worrying me is that the guidance is saying the 50K needs to be shown in the business bank stamtments along with the company accounts

Yes the 50K is shown in the bank statments but in the company accounts it shows as 58K this is because the reason I have mentioned before as I did spent money into the business from my personal account

The question is what will the HO look at will they conside 50K only as it shows in both bank stamens and accounts OR they will also consider the whole amount as 58K ?

Hope my question is clear now?

Nana51113
Junior Member
Posts: 64
Joined: Mon Dec 10, 2018 8:16 am

Re: Director's Loan agreement and Fund transfer

Post by Nana51113 » Sun Dec 23, 2018 12:54 pm

Another explanation is the cost for running the business from my personal account count towards the 50K?

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marcnath
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Re: Director's Loan agreement and Fund transfer

Post by marcnath » Sun Dec 23, 2018 1:33 pm

Nana51113 wrote:
Sun Dec 23, 2018 12:42 pm
I do trust my accountant my inquiry about the immigration rules I have no problem with my accounts the only thing worrying me is that the guidance is saying the 50K needs to be shown in the business bank stamtments along with the company accounts

Yes the 50K is shown in the bank statments but in the company accounts it shows as 58K this is because the reason I have mentioned before as I did spent money into the business from my personal account

The question is what will the HO look at will they conside 50K only as it shows in both bank stamens and accounts OR they will also consider the whole amount as 58K ?

Hope my question is clear now?
If you are on the 50K route, the immigration rules only require you to invest A MINIMUM of 50K and provide evidence for that.

Anything more is not negative and does not harm your application.
My comments are in no way meant to be advisory. I have no professional knowledge of immigration. These are based on my own experience, convictions and personal interpretation of publicly available information.

Nana51113
Junior Member
Posts: 64
Joined: Mon Dec 10, 2018 8:16 am

Re: Director's Loan agreement and Fund transfer

Post by Nana51113 » Sun Dec 23, 2018 2:27 pm

Thank you for your response,

In regards tp the director salary I did invest 54K from my personal account into business account and all these money has been used to buy goods and materials then I got a profit of the company from the sales

My question now is that possible to get director salary from profit not main investments?

Thank you

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marcnath
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Re: Director's Loan agreement and Fund transfer

Post by marcnath » Sun Dec 23, 2018 7:02 pm

Nana51113 wrote:
Sun Dec 23, 2018 2:27 pm
Thank you for your response,

In regards tp the director salary I did invest 54K from my personal account into business account and all these money has been used to buy goods and materials then I got a profit of the company from the sales

My question now is that possible to get director salary from profit not main investments?

Thank you
Yes, it is
My comments are in no way meant to be advisory. I have no professional knowledge of immigration. These are based on my own experience, convictions and personal interpretation of publicly available information.

Nana51113
Junior Member
Posts: 64
Joined: Mon Dec 10, 2018 8:16 am

Re: Director's Loan agreement and Fund transfer

Post by Nana51113 » Mon Dec 24, 2018 11:24 pm

Thank you for your response

Could you please advice if the draft of my company accounts shows that is did loan the company 57K and I am on 50K route , how should I mention the sum of the loan should it be same as accounts 57K or 50K as the HO just requestino just 50K

Please advice

Thank you

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marcnath
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Re: Director's Loan agreement and Fund transfer

Post by marcnath » Mon Dec 24, 2018 11:29 pm

Nana51113 wrote:
Mon Dec 24, 2018 11:24 pm
Thank you for your response

Could you please advice if the draft of my company accounts shows that is did loan the company 57K and I am on 50K route , how should I mention the sum of the loan should it be same as accounts 57K or 50K as the HO just requestino just 50K

Please advice

Thank you
Answered before :!:
marcnath wrote:
Sun Dec 23, 2018 1:33 pm
[quote=Nana51113 post_id=<a href="tel:1720371">1720371</a> time=<a href="tel:1545568954">1545568954</a> user_id=207956]
I do trust my accountant my inquiry about the immigration rules I have no problem with my accounts the only thing worrying me is that the guidance is saying the 50K needs to be shown in the business bank stamtments along with the company accounts

Yes the 50K is shown in the bank statments but in the company accounts it shows as 58K this is because the reason I have mentioned before as I did spent money into the business from my personal account

The question is what will the HO look at will they conside 50K only as it shows in both bank stamens and accounts OR they will also consider the whole amount as 58K ?

Hope my question is clear now?
If you are on the 50K route, the immigration rules only require you to invest A MINIMUM of 50K and provide evidence for that.

Anything more is not negative and does not harm your application.
[/quote]
My comments are in no way meant to be advisory. I have no professional knowledge of immigration. These are based on my own experience, convictions and personal interpretation of publicly available information.

Nana51113
Junior Member
Posts: 64
Joined: Mon Dec 10, 2018 8:16 am

Re: Director's Loan agreement and Fund transfer

Post by Nana51113 » Mon Dec 24, 2018 11:32 pm

Please I need your help with a loan agreement template , or the link from the forum please

Thank you

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marcnath
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Location: Milton Keynes

Re: Director's Loan agreement and Fund transfer

Post by marcnath » Tue Dec 25, 2018 11:33 am

Nana51113 wrote:
Mon Dec 24, 2018 11:32 pm
Please I need your help with a loan agreement template , or the link from the forum please

Thank you
Search the forum for DLA template or Director Loan Agreement template.

There is no standard template but a few people have posted their own agreements
My comments are in no way meant to be advisory. I have no professional knowledge of immigration. These are based on my own experience, convictions and personal interpretation of publicly available information.

Nana51113
Junior Member
Posts: 64
Joined: Mon Dec 10, 2018 8:16 am

Re: Director's Loan agreement and Fund transfer

Post by Nana51113 » Wed Dec 26, 2018 5:39 pm

Dear Mechant,

Thank you for your help , i have found some templates in the forum now , However i really feel so confused about the following :

1- I am on 50K route

2- I did transfer 56K pound from my personal account into my business account ( this is shown in the business bank statements)

3-My company accounts show that 58K has been invested by me to the company and the difference of 2000 K is the cost for running the business from my personal account (56K FROM PERSONAL ACCOUNT TO BUSINESS ACCOUNT + 2000 K THE COST OF RUNNING THE BUSINESS FROM MY PERSONAL ACCOUNT )

4- the company accounts does cover the period up to 9/2018 where the 58K has been invested

5- ON December 2018 i did transfer further money to the company from my personal account to the company account

4- My question as you have explained before that as long as i have invested the 50K the additional amount will not harm my application , BUT what about the director loan agreement should i cover the amount transferred in December OR NOT?

6- Should the loan agreement shows only the amount transferred from my personal account to the company in business statements (56K) or to cover the same amount mentioned in the company account prepared by the accountant which is 58K ???? (56K FROM PERSONAL ACCOUNT TO BUSINESS ACCOUNT + 2000 K THE COST OF RUNNING THE BUSINESS FROM MY PERSONAL ACCOUNT )

Please i need advice as really i feel confused

thank you all

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marcnath
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Re: Director's Loan agreement and Fund transfer

Post by marcnath » Wed Dec 26, 2018 6:32 pm

Nana51113 wrote:
Wed Dec 26, 2018 5:39 pm
Dear Mechant,

Thank you for your help , i have found some templates in the forum now , However i really feel so confused about the following :

1- I am on 50K route

2- I did transfer 56K pound from my personal account into my business account ( this is shown in the business bank statements)

3-My company accounts show that 58K has been invested by me to the company and the difference of 2000 K is the cost for running the business from my personal account (56K FROM PERSONAL ACCOUNT TO BUSINESS ACCOUNT + 2000 K THE COST OF RUNNING THE BUSINESS FROM MY PERSONAL ACCOUNT )

4- the company accounts does cover the period up to 9/2018 where the 58K has been invested

5- ON December 2018 i did transfer further money to the company from my personal account to the company account

4- My question as you have explained before that as long as i have invested the 50K the additional amount will not harm my application , BUT what about the director loan agreement should i cover the amount transferred in December OR NOT?

6- Should the loan agreement shows only the amount transferred from my personal account to the company in business statements (56K) or to cover the same amount mentioned in the company account prepared by the accountant which is 58K ???? (56K FROM PERSONAL ACCOUNT TO BUSINESS ACCOUNT + 2000 K THE COST OF RUNNING THE BUSINESS FROM MY PERSONAL ACCOUNT )

Please i need advice as really i feel confused

thank you all
As I have tried to repeatedly state, the immigration rules only specify the requirements to meet the qualifying investment, which in your case is 50K. You need proper evidence to be submitted for 50K. Whether you have documentation for anything more than that should not impact your application.
My comments are in no way meant to be advisory. I have no professional knowledge of immigration. These are based on my own experience, convictions and personal interpretation of publicly available information.

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