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The Accountants for Growth

Director Loans - Accounting Relief

Director Loans - Accounting Relief
Loans from directors to their company are a significant source of finance for many owner-managed small companies. Often, these loans are interest-free. 
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What to do with overdrawn directors’ loan accounts

What to do with overdrawn directors’ loan accounts

We see many cases where directors draw monies from their companies with the intention of declaring a dividend at the end of the year, only to find that, due to the recession there are insufficient profits to declare a dividend and this leaves them with an overdrawn loan account.

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