Borrowing from a Bank or from my own Company?

[danielw]

I hope this doesn't seem like a silly question, but are there any obvious disadvantages from my borrowing money from my own company (as a directors loan) instead of from a Bank?

I understand that if the loan isn't repaid within 9 months then the Company takes a charge of 25%? But assuming that this is affordable to the company then is there any downside to this? Is there any reason why the loan couldn't be maintained for the same period as a mortgage for example?

[anonymous-user]

it can certainly be a good thing in the right circumstances

it can be disadvantageous to run it for longer than 6 years after the end of the year in which it is made

have a read from here

http://www.hmrc.gov.uk/ct/managing/director-loan.h...