The subject of director’s loan accounts (DLAs) has recently been in the news with concerns regarding the potential misuse of bounce back loans. In theory, director’s loan accounts are relatively straightforward, but they can become quite complicated when you dig a little deeper.

What is a director’s loan account?

While most focus seems to be on company loans to directors, it also works the other way, director loans to companies. So, each director’s loan accounts is a record of the net position between the company and the director. It is essential that the information is up-to-date and the terms of any loans recorded.

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