Readers forum: Question of ownership

I am facing two different situations with two small owner-managed companies. I believe that the technical grounds and principles are the same for both.

First Cliff a sole director and shareholder of his plumbing services company wishes to acquire some £2 000 worth of computer equipment to be used by the company in its business. Because the company is short in cash Cliff suggests that he buys the equipment personally and then introduces it into the company. The company will repay him for the purchase when funds are available.

Second Eric a sole director and shareholder of his electric services company wishes to acquire a commercial van to be used by the company in its business. Because the company was only recently incorporated and does not have an established credit rating he is struggling to find a hire purchase deal. Eric...