Business Loan (Ent Ext)

[sameerb]

Dear Members,

Please help me out.

I had taken business loan out of pure business needs but that business loan was never utilised. now over £30,000 are sitting in my business account with description " loan account" which I cant use for director's loan agreement.

Do i have any other options where I can utilise this amount in my total £200,000 investment?

Thanks in advance.

[JamesBlack]

As per my understanding No.
In your initial application you have stated to HO in your Application form that you have access to 200K readily available to you through out the course of your 3 years leave (visa).
Hence Director's Loan as per my understanding is only formed when you transfer money from Personal to Business Account.
In your case 200K with in 3 years of period in 1 or as many identifiable transaction you want with in 3 years.
If you take money from Business account you may only take it as dividend from the business if the business is making significant profit or as director's salary (not advised though).
Any money outside these parameters is not allowed.
Please hire a competent accountant who has complete knowledge of Tier 1 Entrepreneur HO Guidance.

[sameerb]

Thank you James. Your comment makes sense.

But I would like to know what if I go for Share Capital investment instead of Director's loan agreement.

or

Withdraw loan amount and deposit back through my personal account to correct the description of initial transaction.

Can someone senior or experienced member throw some light on this please.

Thank you.

[JamesBlack]

you are welcome
withdrawing the loan money without any reason from business account and putting it back will only clear the loan and will not add the amount on top of the loan available . should be 200k+ Loan available.
it will raise questions of genuineness.
i m applying extension in 2 weeks. therefore have read and gone through many policy guidance, immigration rules. genuine entrepreneur test.
Chartered accountants who have done successful extension application for Entrepreneur
Many solicitors/ lawyers and chambers of barristers.
greaat help from Immigration board.
had to go through all this just to be sure lets hope

lets wait for seniors reply.