I am the sole director of a limited company involved in design engineering. I want to set up a 2nd limited company that's totally unrelated to trial a new business idea but I need some start up capital. As I would intially be the sole director of both companies, is there any way my current company can give around £5000 to the new company as start up capital? My accountant has advised me that this can be done as a business loan but there needs to be an agreement in place. As I don't know whether my new business idea will work, is there any way this can be done without having the usual loan conditions that stipulate payment terms and interest rates? i.e. can that money be thought of as a gift? I would personally loan the 2nd company the money but obviously it needs to come out of my pocket and unforunately I need the cash at the moment.