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

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26 Points Posted on 20 March 2024

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.

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On 20 March 2024 at 13:24 Report
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Quick Summary
A proprietor with two separate firms, Firm A and Firm B, is seeking advice on whether Firm A can provide an unsecured loan to Firm B using its existing credit limit. Both firms are registered under the same PAN number but have different GST registrations and operate in different sectors (sales vs. services). The proprietor has already been advised against clubbing credit limits by their bank.

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"Do the Right Thing...!!!"
77792 Points Posted on 20 March 2024
Yes, You can give.
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On 20 March 2024 at 14:53
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CHIEF MANAGER
28 Points Posted on 20 March 2024
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.
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On 20 March 2024 at 16:35
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26 Points Posted on 20 March 2024

Bank said no for clubbing the credit limit

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On 20 March 2024 at 17:07
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Profession
19974 Points Posted on 20 March 2024
Status of two firms
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On 20 March 2024 at 17:12
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26 Points Posted on 20 March 2024

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.

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On 20 March 2024 at 17:14

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