Director Loan or Capital share for New Ltd.

Good evening All,
I am thinking set up Ltd. Co and currently have savings 10 K from my employment work. Is it better to put money as a capital shares in the new Company or to put as a loan from director to the company ? There is tax has been already paid from this money that why my question. And the money is for the first time expenses (salary, office exp, etc.), till the business will be good enough to bring profit, thanks in advance

Paying up share capital is a permanent type of finance. You do not generally have any way of getting back that money until the company is wound up or sold.

Directors loans to the company are more flexible. They show as creditors like any other creditor and can be paid back as profits permit. There are no tax implications on lending the money to the company.

Thank you very mush Graham 07,
I was thinking exactly the same way just was not so sure, now is O.K.
Best wishes
Nicky

What do you consider are the advantages to investing funds as share capital rather than as a directors loan? I have heard someone say that it might be easier to gain further loans/credit if you have invested as share capital as this gives the lender more protection and it also looks like you are more committed.

Would you say that is true? And if so, is that the main advantage to investing as share capital rather than as a director loan?