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Thinking of borrowing?

Loans

Loans can be used to start or grow company. As a company, you can apply for a start-up loan from the government.

Directors can also take loans from their companies as well as lend money to that company.

Before you borrow money, you should think carefully about what the money is for and if you will be able to pay it back.

Even if your company is forced into liquidation, you may have to repay any director鈥檚 loans you took, to pay back creditors.

Check how tax is paid on director鈥檚 loans.

Funding

There is a range of government-backed funding and financing options for small and medium-sized enterprises (SMEs).

More about loans

Start-up loans:

• loan from the government of between 拢500 and 拢25,000
• the loan is unsecured so involves a credit check
• applicants must be over 18 and an 鈥榚ligible鈥� business type
• must be a new company or in the first 36 months of trading
• interest is charged

Director鈥檚 loans

• money taken from a company by a director (or family member) as a loan
• money a director lends to the company
• you have to keep a record of all loans taken from the company
• you may have to pay tax on the loan if it isn鈥檛 repaid within set timescales

Detailed guidance on director loans.

Funding and finance

The Department for Business and Trade has a list of more the 100 funding and financing programmes and schemes.

Go back to the director information hub homepage.