First Previous - Page 1 of 1 - Next Last

Capital Injection

  • Fellow PM.Dip
  • Practice Licence
  • 140 posts
  • # 115309

Hello All,

I have a client that is the sole director of a limited company.  Though there is another sleeping partner.

He wants to inject some capital in to the business, but he doesn't want it to appear as a directors loan.  Haven't had a chance to talk to him about it yet, so not sure on the reason for this.

But just thinking about it, I am not even sure how I would enter it into the books.  Does anyone have any ideas.

Thanks

  • Associate PM.Dip
  • Practice Licence
  • 46 posts
  • # 115380

TDS

That sounds strange, why a director doesn't want to show in his loan account.

  • Fellow PM.Dip
  • Practice Licence
  • 140 posts
  • # 115382

Have talked to him since then, and has agreed that a director's loan is the
right thing to do.


I think he misunderstood what a director's loan meant. He thought that a
formal agreement would have to be put in place, with agreed interest rate
and loan period, which he didn't want.

First Previous - Page 1 of 1 - Next Last
loading