# Can I transfer personal loan into my business?



## Leemack (Mar 6, 2009)

As above really.

We are trying to re-juggle our finances between the business and personal stuff. 

Can we transfer our personal loan to the business so the business owns the loan?

Why are we trying? (No we are not going to wind up so the loan dissappears :thumb: )My Mrs wants to get a new car on finance but can't because this would mean we couldn't get the mortgage we want in a few months due to outgoings etc etc and the car loan/finance would put up the monthly expenditure too much.

We would put the car through the business but due to most companies wanting to see 2 years of accounts, this isn't possible.

So basically we are wondering if we can transfer the loan into the business or not.


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## chrisc (Jun 15, 2008)

cant really help on the subject but natwest gave me a cracking deal on loan for my van buissness loan.but id been tradeing useing them for two year


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## justina3 (Jan 11, 2008)

The business can take over the payments of any loan for accountancy reasons of course the liability of the loan would remain in who ever took the loan out. 

think this is what your asking


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## RaceGlazer (Jan 10, 2007)

I can't think of any other way to do it either - on the plus side, the funds the company puts into your account to pay off the loan will increase your income and therefore the coverage of the mortgage multiple you seek.


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## Leemack (Mar 6, 2009)

RaceGlazer said:


> I can't think of any other way to do it either - on the plus side, the funds the company puts into your account to pay off the loan will increase your income and therefore the coverage of the mortgage multiple you seek.


This was another option o thought of.

Maybe pay another salary to increase income - I think my accountant needs to be spoken to in depth.

Thanks for the advice guys :thumb:


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## Maggi200 (Aug 21, 2009)

You would probably introduce the loan through your directors loan account but be aware any over drawn directors loan accouny attracts tax if not repaid after so long, 9 months iirc. if I was at the office I would ask our tax boffins on that one. However you do it, its your loan really


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## Leemack (Mar 6, 2009)

Cheers 

It is just a thought atm but somethingi might look at doing if i can as it would be ideal and allow us the mortgage we want.

Although we are still paying it, it would reduce our personal outgoings


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## DiscoDriver (Oct 27, 2009)

Even were you able to place the loan (or another loan and pay off the personal one) in the business (I assume you run as a limited company given your business name!) the lender would no doubt require a personal guarantee from you which would have to be disclosed on any mortgage application.

Is the detailing business your (not your wife's) only source of income or do you have a second job that would provide the principal income for any mortgage application? If it is your only source, I don't see paying yourself an additional/increased salary from the business would hold any benefit as the company profits would be reduced which would reduce your potential dividend income (this assumes the company shares are held solely by you/your wife).

It's potentially a complex area which should be discussed with your accountant.


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