Directors Loan Agreement format

[KumarTier1]

Could anybody send or post the Directors loan agreement format please (invested 50k entrepreneur team visa).

Very much appreciated if you can.


Many thanks

[Olasunkanmi]

@ KumarTier1, the Directors loan agreement has no definite format. Its just a letter of agreement between you and your company stating the reason you borrow your company the money, the payment plan, and also interest to be paid by your company to you if any.

You can just draft a letter containing all the essential information and ask your accountant to certify it.

[KumarTier1]

Thank you for your message.

Does the legal agreement should be signed in the presence of some other person and along with his signature.... in the agreement ?

could you please confirm it for me!!!


Many thanks

[top]

yea you should do that to make it a legal document, get your accountant signing as a witness as it normally happens..

thanks..

[Sonye]

Hello,

I paid in £40 to open the business account. Would I need a director's loan agreement for this small amount as well?

[Olasunkanmi]

@ Sonye, for accounting purposes, yes you need to keep all record of money paid into the business account and the reason, but most accountant always reconcile such payments and transactions during accounting period.

An accountant will be able to explain to you how to go about it.

[Sonye]

@ olasukanmi thanks a lot! But can i just check that i dont need a directors loan agreement as one of the documents to be submitted for my application

[Olasunkanmi]

@ Sonye, if you have 50k in your personal account, then you don't need to proof any money in your business account for now as you are still applying under available funds which in this case is in your personal account.

[Dasistfact]

hi! We also need to show the period of that agreement. What period should be shown?

[Dasistfact]

How should sign the loan agreement if I'm a director and the only company shareholder at the same time?

[Olasunkanmi]

hi! We also need to show the period of that agreement. What period should be shown?

Its left to you to decide when you want your company to return back the money to you, you can choose 1yr or 10yrs. Its all your decision.

[Olasunkanmi]

How should sign the loan agreement if I'm a director and the only company shareholder at the same time?

Its your agreement and you are the one to sign it but its better to let your accountant attest it.

[Haq Jhandeer]

Can director take loan from ompany

[Olasunkanmi]

@ Haq Jhandeer, normally director can take loan from a business with proper documentation, but in the case of the Tier 1 entrepreneur visa you need to be very careful because the purpose of the visa is to invest either 50k or 200k within 3yrs and if you take loan from the business, I guess you should keep in mind that Home Office will ask questions. Consult an experience accountant for better advice.

[Dasistfact]

hi! We also need to show the period of that agreement. What period should be shown?

Its left to you to decide when you want your company to return back the money to you, you can choose 1yr or 10yrs. Its all your decision.

Thanks for the advice. How do you think what period of loan HO are expecting to see? maybe 5 years?

[confused90]

Could I also have a copy of director's loan please?

I intend on repaying myself with the director's loan, as soon as the company has made enough profits and has enough to repay me back.