Yes, you can. In fact, this may be a preferable option compared to applying for a commercial loan from your bank. Any loans are recorded in the company directors’ loan accounts. Similarly, if the company lends money to the directors, this is recorded in the same place, for accounting purposes.
People also ask, can a Ltd company lend money?
Are loans between limited companies allowed? The good news is, that loans between limited companies are allowed. However, the loan is only allowed if the company making the loan has sufficient funds to cover any liabilities that may arise during the period that the money is outstanding.
Accordingly, what is it called when someone manages your money?
That person has a fiduciary duty to take care of the money. Fiduciary comes from the Latin word fidere, “to trust.” That’s because a fiduciary is the person you trust to hold and watch over your assets until it’s time for them to go to another designated person.
What is it called when you lend money to a company?
Debt. Money a member invests in the LLC that the company need not repay is deemed an equity contribution. This contribution increases the member’s ownership interest in the LLC. If you simply lend money to your LLC, your company becomes a debtor and you become a creditor.