My IT company is going to lend to my property company. I am a director in both these companies.
My end goal is, borrow money from a IT trading company(friend) and use it to buy property through my property company. If I can borrow it directly to the property company then great if not, can I borrow to my IT trading company.
No. I have a property company through which I want to buy a property and I want to borrow money from a friend who has a IT trading company. I just want to make sure I can borrow in this setup. It's not a director's loan or anything like it.
My answers
I own two companies and I am the director in those companies.
The question was can I borrow money from my friends company in which I am not a director.
I understand I can borrow money between my companies. Thanks again for your valuable inputs.
Thank you very much. That is very useful, I will look into it.
Thanks for your reply Wilson Philips.
I just want to make sure the lender(friends IT trading company) doesn't have a problem as well.
Thanks for your inputs DJKL.
What do you mean by ER issues re the shares. Sorry I am not familiar with the abbreviation.
Thanks for your reply.
Just to clarify, my property company is a SPV with the following Nature of business. Should this be of any concern?
68209 - Other letting and operating of own or leased real estate
82990 - Other business support service activities not elsewhere classified
My IT company is going to lend to my property company. I am a director in both these companies.
My end goal is, borrow money from a IT trading company(friend) and use it to buy property through my property company. If I can borrow it directly to the property company then great if not, can I borrow to my IT trading company.
Hope that clears it up.
No. I have a property company through which I want to buy a property and I want to borrow money from a friend who has a IT trading company. I just want to make sure I can borrow in this setup. It's not a director's loan or anything like it.
Thanks for the reply.
Well, the Ltd company is a IT trading company willing to lend another IT trading company. Is there any regulations around it?