Insolvency & Law Business Advice Show
Peter Murray is the director of Insolvency & Law, a multi-award-winning consultancy providing commercial debt recovery, credit management and corporate insolvency solutions since 2009. Each week, we offer in-depth analysis of the issues affecting company directors and business owners.
Insolvency & Law Business Advice Show
Could You Already Have an Overdrawn Director’s Loan Account?
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In this episode of the Insolvency & Law Advice Show, we explore the nature and risks of overdrawn Director’s Loan Accounts (ODLAs), which occur when a company director owes money back to their business.
These debts often accumulate subtly through everyday personal expenses, undocumented drawings, or temporary borrowing that goes unreviewed until year-end accounts are finalised.
Because these balances represent company assets, they can become significant liabilities if the business faces financial instability or enters liquidation.