Who will lend?????

susi

Hi
my son has recently set up a business with a partner, things arent going too well between them and my son wants to buy back his half. Where will he get a loan for around 10,000. Bearing in mind the business has only been up and running for a month or so, I assume most places want to know annual income and so on, which obviously is a bit difficult with a new business. Any help would be appriciated.......................

jonesMUFCforever

What is the business? Are the bank accounts for the business in joint names? Why doe he need £10k to buy half the business - did he or his partner put this amount in in the first place?
Has he considered just starting off by himself. If it is either to sign on the account then he should get out NOW what he can before the other partner has the same idea.Resolving Partnership disputes can get messy and IMO he should obtain legal advice as to his financial position in the business asap/.
Eric

Mark7799

Was there any formal deed of partnership in place between your son and friend?

M_Thomson

Also, if you require a personal Loan, lenders will not offer one for business reasons.

susi

Its a hairdressing salon, everything is in my sons name but the other guy put in 10,000 but didnt want his name on anything for various personal reasons. My son has overseen all the work, ordering and everything else, this guy has done virtually nothing (which is a big part of the problem)

jonesMUFCforever

If everything is in your son's name then the partner does not have much choice but to agree to whatever your son wants.
Could the partner not agree to be a silent partner taking a cut of the profits until such time as he has been paid back?
Eric