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All decisions have consequences - some unforseen
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If you don't take a loan of more than £5k at any time then there can never be any consequences - foreseen or unforeseen!
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If after taking a loan ... one declares a dividend that one cannot pay without redeeming the loan then that is at best foolish anyway.
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Well yeah, but I would venture to say that the situation I described is quite common and what you've suggested isn't. A dividend
can be declared without breaching the realised reserves rules despite what you say because the loan is a debtor and its just a question of reclassifying an asset on the balance sheet.