Loan as new Director issue.

samo8076

Hi guys,

Applied for a loan via Natwest yesterday and got accepeted in principle. I went in branch today to sign the papers etc, however, upon checking my account, Natwest found that I am a new director of a company (I have a 10% share), and therefore, couldnt complete the loan as personal, and would have to do a new loan as a director, which means I would have to supply 2 years worth of accounts for the business, which I do not want to do.

Anybody come across this before?

Cheers

ReadingTim

I guess it depends on what you want the loan for. If it's for a new car, kitchen, extension etc, I can't see why being either a director or a shareholder of a company should make a difference.

But if you want the cash to fund the said business, then it's only reasonable that the bank might want more info as to the entity into which they're investing.

So, how much did you want to borrow, and what did you say you wanted the money for?

samo8076

Was after £5000. £2500 to pay off some store debt, and the rest to fix my car.

Tixy

Is your main employment and income from the Company of which you are a shareholder and director?

It would still be a personal loan - but in assessing your financial position they would ask to see the Company accounts as well as understanding your personal financial position and income.

samo8076

It is Tixy.

ReadingTim

samo8076 wrote: »

...which means I would have to supply 2 years worth of accounts for the business, which I do not want to do.

Assuming this is a private limited company then copies of the accounts are filed at Companies House, and can be downloaded by anyone and everyone (including the bank, but we won't go there....)

I'm somewhat confused by your reluctance, as this information is in the public domain / on the public record anyway...

Brummum11

As you only own 10% of the company I can't see why the company accounts would make any difference either way. It should be your personal income from the company that should be of more interest.

But then that would just make sense and we are talking about a nationalised bank!

I would just choose a different provider.

samo8076

I have no problem them seeing accounts, it just took me by suprise. Had no idea being a director would require different criteria for the loan.

MEM62

You might want to do a little research into what being a company director actually entails.