Direct cash investment

[jafersadeq]

Dear Gurus,

Application Form-Section 3-K3-Page 41, Investment:

The investment was made during your initial period of tier1 Entrepreneur leave directly by you into the business in cash.

PBS Guidance-Page 46:
132. You must show that either the full amount of £200,000 or of £50,000 if appropriate, in cash has been invested in business in the UK.

Tier 1(Entrepreneur) Policy Guidance - Page 74
Types of investment accepted for the award of points
A20. Direct cash investment in order to ensure that the money is used by the business, you should provide the accounts of that business for assessment. These accounts must show the investment in money made directly by you, in your own name.

What do they mean (IN CASH)?

To whom this investment? Is it for directors of companies?

Thanks

[zimba]

It means you cannot give assets to a company as an investment, for example you cannot change the ownership of a shop from your name to your business name and claim it as an investment

[jafersadeq]

It means you cannot give assets to a company as an investment, for example you cannot change the ownership of a shop from your name to your business name and claim it as an investment

Thanks Zimba88,

What is the difference in investment between Director's Loan and Direct cash Investment, both of them is cash investment.
HO classified the investment to 3 types, the above is part of it, share capital is clear, DL is clear but what about Direct Cash Investment, it is an investment in cash too.

Please clarify

[zimba]

Only two ways to invest both in cash, either DL or Shares

[samaygrg]

Direct cash investment meant our investment must be in the form of Cash Injections which we allowed to do via to mechanisms/options ...Directo's Loan or Share Capital.

[jafersadeq]

Only two ways to invest both in cash, either DL or Shares

Direct cash investment meant our investment must be in the form of Cash Injections which we allowed to do via to mechanisms/options ...Directo's Loan or Share Capital.

Tier 1 (Entrepreneur) Application Form - Section 3
K3. You must have invested no less than £200,000 (or £50,000 if, in your last grant of leave, you were awarded points for funds of £50,000) directly into one or more businesses in the UK. Please tick to confirm how this investment has been made (you may tick more than one box, where applicable):
Box1: Part or all of the investment was made in the 12 months (or 24 months if you were a Tier 1 (Graduate Entrepreneur)) prior to your initial Tier 1 (Entrepreneur) application, and you demonstrated this investment when you made your initial Tier 1 (Entrepreneur) application;
Box2: The investment was made during your initial period of Tier 1 (Entrepreneur) leave in the form of a director’s loan;
Box3: The investment was made during your initial period of Tier 1 (Entrepreneur) leave in the form of share capital;
Box4: The investment was made during your initial period of Tier 1 (Entrepreneur) leave using funding made available by a Venture Capital firm/a UK Seed Funding Competition/a UK Government Department;
Box5: The investment was made during your initial period of Tier 1 (Entrepreneur) leave directly by you into the business, in cash;
Box6: The investment was made during your initial period of Tier 1 (Entrepreneur) leave directly by a third party, but on your behalf.

Dear Zimba88 & samaygrg

I invested via Director’s Loan in cash. I have to tick box 2 regarding director’s loan. What about box 5. Is it mandatory to tick it because it shows direct cash?
Please advise,

[samaygrg]

Tier 1 (Entrepreneur) Application Form - Section 3
K3. You must have invested no less than £200,000 (or £50,000 if, in your last grant of leave, you were awarded points for funds of £50,000) directly into one or more businesses in the UK. Please tick to confirm how this investment has been made (you may tick more than one box, where applicable):
Box1: Part or all of the investment was made in the 12 months (or 24 months if you were a Tier 1 (Graduate Entrepreneur)) prior to your initial Tier 1 (Entrepreneur) application, and you demonstrated this investment when you made your initial Tier 1 (Entrepreneur) application;
Box2: The investment was made during your initial period of Tier 1 (Entrepreneur) leave in the form of a director’s loan;
Box3: The investment was made during your initial period of Tier 1 (Entrepreneur) leave in the form of share capital;
Box4: The investment was made during your initial period of Tier 1 (Entrepreneur) leave using funding made available by a Venture Capital firm/a UK Seed Funding Competition/a UK Government Department;
Box5: The investment was made during your initial period of Tier 1 (Entrepreneur) leave directly by you into the business, in cash;
Box6: The investment was made during your initial period of Tier 1 (Entrepreneur) leave directly by a third party, but on your behalf.

Dear Zimba88 & samaygrg

I invested via Director’s Loan in cash. I have to tick box 2 regarding director’s loan. What about box 5. Is it mandatory to tick it because it shows direct cash?

Please advise,[/quote]


Yes, you need to tick it in.

[jafersadeq]

Dear Gurus,

Shall I tick two boxes, one for director's loan and one for direct cash investment ?

Thanks

[zimba]

Dear Gurus,

Shall I tick two boxes, one for director's loan and one for direct cash investment ?

Thanks

Yes, this is not really important