Refused bridging loan - directors loan instead?

G

greentree

Registered User
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I wonder if someone could give us some advice.

We are in the process of buying a new house and have been refused a bridging loan from the bank (circa 100k).

I have my own company and have the funds to cover this. Is it illegal for my company to loan me this money for a few weeks while we sell our home?

Thanks
 
Maybe, Section 31 Companies Act 1990 prohibits loans to directors but there is an exemption where the loan is less than 10% of the relevant assets of the company. So if the company has a balance sheet total of more than €1m that you may be ok.
 
This would definitely break the 10% rule. So, what would happen if I did it? Would I be sent to Jail?
 
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