** Do not take the loans for director’s personal use. HMRC will charge the company a tax (s455 tax) if the director takes loans from the company. If the amount is above £10k, personal taxes will also be applicable.

** Do not take the loan when you know the company is no longer viable and will need to close in the foreseeable future. The banks will object to your request for ordinary dissolution.

** Do not spend on non pressing credit obligations or the ones that you can negotiate and get favourable repayment terms.

** Do not borrow without a proper business plan to sustain or grow your establishment.