problem with bank over a business loan

housebuyer_abc

scc_southport wrote: »

Hi thanks for your reply, i have been paying loan from my own personal money, but with the bank demanding it all now i was not sure if i could do it from my business, i still have cellers full of the old stock from last company [ when we closed the company it was free of debt except for loan ] i went personal gaurantee so still paying loan, but thought i could clear loan by buying from old company to the new this would clear loan and allow new company to sell stock, not trying to get out of paying loan because a loan is a loan, just want to do it all legal

The company could buy the stock, but it would have to be at market wholesale value (even if that is below what you originally paid).Otherwise you will be seen to have engineered a loss for your new company, and if you were to get investigated (a certain percentage are checked at random each year) they would argue whether or not this was an allowable transaction.

If there is definite profit in the sale of these items from your company to others (after the purchase price from you) then this would be okay.