Business borrowing from customers.

Fiftyfivepercent · 13 June 2016 at 2:18PM

Hello,

I'd really love some advice from you good people!

My child's breakfast club are going to adding £80 onto every child's bill in a couple of months time so they can pay for building work.

They're then going to repay by crediting £5 a month onto our bills.

I can afford to pay it, but it just feels a bit dodgy. I assume that I would then be a creditor if the business went under before they'd repaid? Does anyone know of anything similar being done by small businesses?

If this isn't best place to put this, please let me know.

Suarez · 13 June 2016 at 3:16PM

If they can't afford to budget for the work from the current income then how are they going to repay the £80 each? Will the building work increase the income potential?

paddyrg · 13 June 2016 at 5:36PM

I'd be wary that it'll set a precedent when the next bill comes in, and it's not long-term viable. Instead maybe they can sell shares/offer some kind of bond so backers get some small benefit and it keeps things intact?