Taking money I loaned my company back out

[Chatterbox]

Hi everyone,

I did a search but couldn't find this explicitly.

So I loaned my company some money from personal funds a month ago. Now A LOT of unexpected personal expenses have come in, and I need some of that back.

Now the question for me is: do I do the same as I did to put it in (write a note, saying I loaned, no interest), and just transfer it back?

Any advice is appreciated.

Thanks!

[TheCyclingProgrammer]

If you have an outstanding loan balance owed to you you can withdraw from it at any time cashflow permitting.

[Chatterbox]

If you have an outstanding loan balance owed to you you can withdraw from it at any time cashflow permitting.

Thanks for replying! By cashflow permitting, does that mean the company needs to get some money in first? Currently the only money in the biz account is the money loaned.

[northernladuk]

What does your account say about all this?

Are you on Freeagent to help account for it?

How much are we talking here.

Bit more info would be nice.

[Chatterbox]

What does your account say about all this?

Are you on Freeagent to help account for it?

How much are we talking here.

Bit more info would be nice.

Hi!

My account? I'm assuming you mean accountant? I had one, he advised me on my setup (including to put the loan in there) but turned out to be useless (and wrong!) after that, so I'm currently looking for a new one. I'm still wondering whether it's worth the monthly fee if I only have an average of 3 gigs per month...?

Not on FreeAgent.

We are talking about 8000 GBP, in the account, I need to take about 3000 of that out.

[northernladuk]

Doesn't this situation kind of tell you that you do need an accountant? A good one will save you more money than they cost.

Get one that offers Freeagent. There is a sticky link with recommendations from other reputable posters.

[TheCyclingProgrammer]

Thanks for replying! By cashflow permitting, does that mean the company needs to get some money in first? Currently the only money in the biz account is the money loaned.

Cash flow means cash flow. Will repaying yourself some of the loan impact YourCo’s ability to pay its bills and any other liabilities?

[craigy1874]

Hi!

My account? I'm assuming you mean accountant? I had one, he advised me on my setup (including to put the loan in there) but turned out to be useless (and wrong!) after that, so I'm currently looking for a new one. I'm still wondering whether it's worth the monthly fee if I only have an average of 3 gigs per month...?

Not on FreeAgent.

We are talking about 8000 GBP, in the account, I need to take about 3000 of that out.

Not all accountants charge monthly fee. We can provide a year-end service only for example which is a one-off fee, dependent on the level of work involved.

But you should appoint an accountant of some sort.

In your example above, there should be no issues drawing out £3k of the previously loaned £8k.

[Lance]

you need to understand what insolvency is. If your company is insolvent you are not allowed to trade as that's illegal.
You are insolvent if your debts exceed your credits+assets. IE. you owe more than the sum of the cash in the bank and the money owed to your company.

Bear in mind that the company owes you, so you are a creditor, but a special one meaning that as long as it only owes you it can be technically insolvent.

What that means is that you can repay yourself as much as you need as long as you don't drop into insolvency. It sounds like you can probably take that £3k out but just check that you can still pay bills.

[Scruff]

Erm - don't over complicate matters.

If YourCo. has £8k in the bank, and liabilities other than your Loan Account which are less than than £5k, then pay yourself the £3k back. You don't need notes, explanations or any other tosh. It is money that YourCo. owes you.