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Taking out personal finance to buy a business expense

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  • Taking out personal finance to buy a business expense

    Hi all. I need to buy a camera for my limited company. Although the company can afford it outright I want to get it and pay for it over the course of 12 months on a 0% finance agreement.

    As the company is relatively new (2/3 years old) I don't think I can get it by applying in the companies name. I have good personal credit history. Can I buy it in my name, pay monthly for it under the personal agreement, and then reimburse myself each month from the business account. This seems like a relatively simple question but Ive looked over Google and cant find an answer. I'm guessing I use the Director's Loan account to record the transactions? Do I just credit it each month, then debit it. I guess I have to also have a company asset too.‚Äč

  • #2
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    • #3
      Yes, you can buy and sell it to your company, and the company can pay you back. As you mentioned, it would be a director's credit. However, suppose the company needs the camera and doesn't have the money to buy it. In that case, I think it has more significant problems. You might want to consider how to allocate your budget so that your company doesn't become insolvent later. When I started my business, I was on the verge of bankruptcy. I even had to seek help from financial advisors at https://stephenswmg.com to save my company. Now my company is a year old, and it only brings in income.


      • #4
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