About 200K investment "spent"

[happynick]

just wonder is there anyone know that can we deposit some money (such as 10K out of 200K into the business bank) to get interest for my business?

OR is it necessary to "spend" all 200K as except utility. rent. hiring and buying stock and do some advertising. Can I use the funds carefully and what if I cannot spend all?

[marcnath]

just wonder is there anyone know that can we deposit some money (such as 10K out of 200K into the business bank) to get interest for my business?

OR is it necessary to "spend" all 200K as except utility. rent. hiring and buying stock and do some advertising. Can I use the funds carefully and what if I cannot spend all?

There is no requirement to spend all the money.

[happynick]

Thanks for your reply

can use some portion of 200K deposit in the business bank for getting interest? (Besides the actual business)....is it in the point (4) as below?

Sorry that as I found the guideline online but not pretty understand

Below is the guideline of using the funds.
(ii) ‘Invested’ means that the funds have been invested into a business or businesses which the applicant is running as self-employed or as a director or member of a partnership. ‘Invested’ or ‘spent’ excludes spending on:
(1) the applicant’s own remuneration,
(2) buying any business from a previous owner, where the money ultimately goes to that previous owner (irrespective of whether it is received or held directly or indirectly by that previous owner) rather than into the business being purchased (This applies regardless of whether the money is channelled through the business en route to the previous owner, for example by means of the applicant or business purchasing ‘goodwill’ or other assets which were previously part of the business.),
(3) investing in businesses, other than those which the applicant is running as self-employed or as a director, and
(4) any spending which is not directly for the purpose of establishing or running the applicant’s own business or businesses.

Please help!
Thanks!
Cheers

[marcnath]

I would not interpret depositing money in an interest bearing account as spending.
But yes, if you are in an IT consultancy business and spend money on buying lots of restaurant furniture then you would violate (4).

[nemo999]

At least in UK, you would hardly get any interest by keeping money in UK bank. Interest rates are bad...

[seasky]

At least in UK, you would hardly get any interest by keeping money in UK bank. Interest rates are bad...

But good for us entrepreneurs 1. when we need debt capital not expensive 2. investors need to invest in us as not making any returns from interest