Accounting procedure question

[tracyk]

If a director of a limited company wants to 'loan' some money to his son - who is a supplier of the company. What is the best way to do it?

Pay money on account to the supplier and offset future invoices against it. or take a directors loan and pay it personally to his son?

I'm not sure about the legalities ut I think the first way would be better (thought the IR may not like it)

The second way would be classed as a taxable perk.