How to inject money into a business

How to inject money into a business

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Discussion

pete_esp

Original Poster:

278 posts

102 months

Tuesday 9th January
quotequote all
I’m looking for advice on how to put some capital into my business. It currently has 3 shareholders including me, I’m the only director.

We need to put some capital in to see us through some anticipated bills and both of the other shareholders are willing to do so but I’m not sure what the process is to do this.

I was considering either making them both directors and doing directors loans but this would involve drawing up contracts etc and add to the bills or having them both give me the money so that I can do it as a single directors loan with the aim of getting the money back out by the end of the year and redistributing it to them.

Or all of us just pumping the money in and taking it back out as dividends again by the end of the year.

Any advice welcome!

trickywoo

12,307 posts

237 months

Tuesday 9th January
quotequote all
Money you put in personally can just be taken out again. Simple bank transfer. Paye, dividend or any other formal format isn’t required.

Whoever puts the money in just needs to satisfy themselves they will get it back and other shareholders won’t try and put a claim to it.

Simple as that.

lizardbrain

2,469 posts

44 months

Tuesday 9th January
quotequote all
No idea,

But personally I would just transfer in the cash, and mention it to my accountant approx one year later.who would roll her eyes and put it in a directors loan journal or something.

what's the worse that can happen? Can't imagine HMRC would be interested if nothing in it for them


robscot

2,506 posts

197 months

Tuesday 9th January
quotequote all
trickywoo said:
Money you put in personally can just be taken out again. Simple bank transfer. Paye, dividend or any other formal format isn’t required.

Whoever puts the money in just needs to satisfy themselves they will get it back and other shareholders won’t try and put a claim to it.

Simple as that.
^ That.

Directors Loan.

StevieBee

13,570 posts

262 months

Tuesday 9th January
quotequote all
trickywoo said:
Money you put in personally can just be taken out again. Simple bank transfer. Paye, dividend or any other formal format isn’t required.

Whoever puts the money in just needs to satisfy themselves they will get it back and other shareholders won’t try and put a claim to it.

Simple as that.
.... but that there's a risk that they may not.

LooneyTunes

7,584 posts

165 months

Tuesday 9th January
quotequote all
robscot said:
trickywoo said:
Money you put in personally can just be taken out again. Simple bank transfer. Paye, dividend or any other formal format isn’t required.

Whoever puts the money in just needs to satisfy themselves they will get it back and other shareholders won’t try and put a claim to it.

Simple as that.
^ That.

Directors Loan.
Doesn’t need to be a director to make a loan. Just make sure there is a proper loan agreement drawn up.

trickywoo

12,307 posts

237 months

Tuesday 9th January
quotequote all
StevieBee said:
.... but that there's a risk that they may not.
True and the fundamental concern of going into business with other people.

No matter how well you think you know someone when money is involved anything can happen.

Probably won’t but best to be prepared.