This is the question that owner/directors of companies have to ask themselves. Of course, many successful businesses have benefited hugely from the owner stumping up the cash as the bank or potential investors haven't bought into the untried business model. Consequently, the owner doesn't owe anything to anyone and when stellar performance comes along they are sitting pretty.
What if the business has been going a long time, it is in an established market, plodding along, and does not have a unique product or service? Directors are not drawing any funds or are funding the business to pay the wages. Our advice is to be very wary and do a thorough cost benefit analysis of what you are doing. Could it be that the company could restructure some of its debts, ask for more time to pay debts, cut costs etc? There is a huge amount of information on our company rescue site about this.
If you are putting in lots of money into your struggling company it may be worth considering how you can protect your position if the business fails.
It may be that you take out a debenture i.e. some sort of security over the business. For more information on charges see our pages on fixed and floating charges. It would be advisable to seek legal advice before lending money to your own company - we know lawyers who can help with this. Before you do, speak to us for a 'reality check' to see if you are risking too much of your own money, perhaps if you are emotionally attached to your company.