Proprietor with two firms can give Unsecured Loan to other firm?

Others 282 views 5 replies
User Avatar

5 Points Joined July 2020

Hi

I have Two Proprietor firms:

Firm A

Firm B

I have Credit limit in Firm A for running Business, But Now I am expanding Firm B Business, I need Immediate Funds for the Expansion. 

The question is Can Firm A give unsecured loan to Firm B from CC limit?

Both are registered in my PAN number. Looking for CA Advice in this matter.

0 Reply Share Follow
On 20 March 2024 at 13:24 Report
Replies (5)
User Avatar

"Do the Right Thing...!!!"
128111 Points Joined January 2015
Yes, You can give.
Reply
On 20 March 2024 at 14:53
User Avatar

CHIEF MANAGER
35 Points Joined December 2009
It would be more appropriate if you approach the financing bank for making the limit common for both the firms. With their permission, you can utilise the limit, in both the firms.
Reply
On 20 March 2024 at 16:35
User Avatar

5 Points Joined July 2020

Bank said no for clubbing the credit limit

Reply
On 20 March 2024 at 17:07
User Avatar

27908 Points Joined May 2017
Status of two firms
Reply
On 20 March 2024 at 17:12
User Avatar

5 Points Joined July 2020

what do you mean by status?

 

Both firm belong to same proprietor but have different registered GST number. One firm is into sale business and one into service business.

Reply
On 20 March 2024 at 17:14


CCI Pro

Leave a Reply

Post Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Recent Threads

More recent discussions | Post

Related Threads
Loading