Small business accounting

How do I repay a Directors' loan account?

Last updated
March 3, 2025

Contents

How do I repay a Directors' loan account?

There are various ways to repay a director's loan.

  • Dividend: A paper dividend can be declared, which is a dividend that is offset with the directors' loan instead of being transferred to the director's personal account.
  • Cash repayment: A repayment is made by transferring money into the company account from a personal account.
  • Expenses or salary: The loan can be offset using other money owed to the director, such as the directors' underpaid salary or expense reimbursements.

<p>There are various ways to repay a <a href="https://www.goforma.com/small-business-accounting/what-is-directors-loan-account" target="_blank">director's loan</a>.<br></p><ul><li>Dividend: A dividend can be declared, and the money can be used to pay off the loan instead of being transferred to the director's personal account. </li><li>Cash repayment: A repayment is made by transferring money into the company account.</li><li>Expenses or salary: The loan can be paid off using other money to the director, such as the director's salary or expense reimbursements. <br></li></ul>

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