Whatever you do don’t do this!

When times are tough, you can be very tempted to put in new money from yourself or family and friends, this might be for payroll commitments or to give you breathing space until more money comes into the business.

There is a “Golden Rule” you must take advice first, before you put any new money into the business.Otherwise you could face really serious preference issues if the company went into insolvency at a later stage.Lets say you put in a £100k and then repaid yourself and some 18 months later the company went into liquidation, the liquidator could well insist you repay this money as you re paid yourself in preference to your other creditors.

In most cases by taking advice first you can protect yourself against this happening and making life considerably easier, however, safe things look, please take advice first.

A phone call now could be a life saver later.

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