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Post Info TOPIC: Loaning my company money
krazykev


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Loaning my company money
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I have a very (very) small business and I would like to make a relatively large stock order.  However, the company cannot afford to pay for the stock.  Can I loan the company the money and have the company repay me when it has sold the stock?  2 questions, really:-

 

1) Is this allowed, are there are significant complications?

2) How is this recorded in Sage?

Thanks all

Kevin



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gbm


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Hi Kevin,

1. Yes that is fine, no basic complications

2. If you are paying the money into the bank account, post it as a bank receipt against your directors loan account. This will then show up as a liability of the company - because the company owes you money.

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Regards,
Nick

Website: www.gbmaccounts.co.uk
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Factsheet | Starting a Business

 
krazykev


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Sounds straight forward enough, and I already have a directors loan account I think from the initial capital I used to start the company. Thanks for your advice.

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