Get guidance on managing overdrawn directors’ loans, addressing potential financial complexities.

Explore our video resource for valuable insights on Directors’ implications and discover how our advice can assist you with any personal concerns. Access guidance now.

Overdrawn Directors Loan Accounts

When you, as the Director, owe money to the company, it results in an overdrawn Directors Loan Account. This could occur from taking a loan or receiving excessive dividends when the company lacks sufficient profit. While having an overdrawn director’s loan is not unusual, if the company approaches formal processes like liquidation, the overdrawn amount becomes an asset, and the liquidator may pursue the director personally. It’s crucial to assess this situation before entering any formal processes to avoid inadvertently complicating your personal financial matters.
Consult with us to evaluate potential implications before making decision.

Bounce Back Loan Misuse

Originally intended for business purposes, the Bounce Back Loan allowed a maximum of 25% of the company’s 2019 turnover or predicted turnover with substantial evidence. If used for personal benefit, the Liquidator treats it as a Directors Loan or Illegal Dividends, pursuing the debt personally.

If your earnings involve salary and dividends, consult with us BEFORE entering a formal process to avoid potential pitfalls. We thoroughly assess all aspects of the Bounce Back Loan confidentially and at no cost before deciding on the company’s closure.

We can assist you in navigating these challenging times and guide your business towards recovery.