Creating a Loan

Creating a Loan

Record new loans to track balances and compliance requirements.

How to Create a Loan

1. Navigate to Loans in the sidebar
2. Click Add Loan
3. Fill in the loan details:
   • Loan Type: Select the appropriate type
   • Director: Choose the director involved
   • Loan Reference: A unique identifier (e.g., LOAN-2024-001)
   • Loan Date: When the loan was made
   • Principal Amount: The loan amount
   • Interest Rate: Annual interest rate (0% if interest-free)
4. Optional: Add board resolution date and documents
5. Click Save to create the loan

Loan Details

Required Fields:

• Loan Type
• Director
• Loan Reference
• Loan Date
• Principal Amount

Optional Fields:

• Interest Rate (Annual %)
• Board Resolution Date
• Board Resolution Document
• Loan Agreement Document

Director Loan to Company

When a director lends money to the company:

1. Select Director Loan to Company
2. Enter the director who is lending
3. Record the principal amount received
4. Set interest rate if applicable
5. Attach board resolution if available

Director Loan from Company

When the company lends to a director:

1. Select Director Loan from Company
2. Choose the receiving director
3. Enter the loan amount
4. Note: Section 185 restrictions may apply
5. Board resolution is typically required

Attaching Documents

For proper documentation:

1. Click Attach Document in the loan form
2. Upload:
   • Board Resolution: Authorizing the loan transaction
   • Loan Agreement: Formal terms of the loan
3. Documents are linked to the loan record

After Creation

Once created:

• Outstanding principal equals the principal amount
• Accrued interest starts at zero
• Loan appears as Active
• DPT-3 filing status shows as Pending (for director loans)