Payments

Can I pay the loan from my personal funds?

Sometimes a director wants to put their own money in to cover a company loan payment — a tight month, a gap before a big receipt. You can, but because the loan is to the company, how you record it matters.

It is allowed, but treat it properly

The loan is a company debt with no director personal guarantee, so you are not obliged to pay from personal funds — but you may choose to. If you do, the money you put in is a director's loan to the company, not simply "paying the company's bill". See a director's loan to your own company.

Record it correctly

Tell your accountant so it is posted to your director's loan account and the company's books stay accurate. Getting the reference right on the payment helps it match — see what reference to use and can someone else pay on behalf of the company.

If you are doing it because the company can't

Regularly propping up company payments from personal funds is a sign the company's cash flow needs attention — talk to us rather than quietly covering it each month. See my business cash flow is tight this month.

We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee. As business finance arranged outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or the FSCS, though you can still raise a complaint with us and we will handle it fairly.

See also: A director's loan to your own company, Can someone else pay on behalf of the company?, Can I pay from a different bank account?.

Already a customer? Sign in to your account Sign in

Ready to apply?

Apply online in minutes. We lend to UK limited companies and LLPs — no personal guarantee required.

Apply for a Credicorp loan →
Back to Help Centre