LTD loan responsibility / paying myself wages

[pr01]

Hi All,

I recently started an LTD company to sell my computer games for PCs.
My intention was to slowly grow the company over 2-ish years then resign from my day-job once cash flow become decent enough.

Sadly - I was unexpectedly made redundant from my day-job over Christmas.
This means I need to rapidly get some kind of cash flow going - in order to be able to grow my company to a money-earning state.
If it's relevant my first game made just £300 (with zero marketing) - its not a lot but enough to show me that there is money to be had if I had a marketing budget.

I am thinking of a bank loan, to use for marketing, purchasing digital-assets (artwork) and also to cover my wage.

So my questions are:
can I pay my own wages out of a loan?
and if the games don't sell well - am I personally responsible for the loan repayments?

Many thanks in advance!

Yours,
Richard.

 

[Mark T Jones]

You can pay yourself with a loan, however most lenders won’t lend you money to pay yourself

Yes, any lender will require a personal guarantee

Your best bet here is Start Up Loans.

 

[Mr D]

You can usually use the loan for whatever you want. Whether using it to pay wages is perhaps a poor use of resources is another matter.

Depends if the loan is just to the limited company (in which case the company is liable) or whether you sign a personal guarantee - in which case if the company does not pay the loan the bank will chase you.

 

[pr01]

Many thanks for the responses guys!

 

[helen0722]

I would say find another job first and carry on with the business the worst thing you can do is taking a wage from your business that is not making any money.