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Getting money into a business start-up

  • 24-07-2006 8:48pm
    #1
    asdfb
    Closed Accounts Posts: 1 ✭


    Can anyone help me? I'm starting my own business and need to put in about €9000 to get it up and running and get the cash-flow running. I have my own personal money, but I would like for the company to pay me back in about 6 months' time.

    Could someone explain what I need to do? I've heard of a 'director's loan', but is this complicated to put through the books at first?

    Cheers,

    Barry


Comments

  • #2
    antoinolachtnai
    Registered Users, Registered Users 2 Posts: 9,815 ✭✭✭antoinolachtnai


    Director's loans that you hear about are usually in the other direction. You are just investing capital in your business. There is no big deal about taking the money back out in a couple of months. Talk to the accountant though, you are right to get the book work straight at the start.


  • #3
    Kinetic^
    Closed Accounts Posts: 13,249 ✭✭✭✭Kinetic^


    Yeah as said before,a director's loan is the way to go. You can PM me if you like and I'll go through it with you and any other questions you've got.


  • #4
    Cantab.
    Closed Accounts Posts: 1,444 ✭✭✭Cantab.


    You could just put a director's loan through the books. Not sure if there is a special form that you must fill out?

    Also, charge your company interest on money lent? You might be liable for CGT then? I was thinking 10% would be a reasonable interest rate over one year?


  • #5
    kluivert
    Registered Users, Registered Users 2 Posts: 2,399 ✭✭✭kluivert


    If you provide the company with €9000, you "the director" are making a loan to the company.

    The ability of the company repaying you the director wil depend on whether or not the company has the money to pay you or not. If it has the money then there should be no problem.

    Anyway.....

    Loans to directors screams Companies Act 1963.
    Loans to directors must not exceed 10% of the net assets of the company in the current year and in the prior year.

    Loans from directors screams S.40 Companies Act.
    The liabilities of the company must not be less than half of the called up share capital in the company. EGM is required within 28 days of first notification that the company as "negative assets" as I call it.


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