Wednesday, March 29th, 2017
Just like romantic relationships that fall apart and put people at risk of bad debt, business relationships – and any finance arrangements that are linked to a company or business – can go wrong too.
Before people enter a business partnership and apply for joint business loans, it’s important to understand how to manage those loans properly – and professionally – to ensure that everyone’s interests are protected.
If loans are done through an incorporated partnership, evidence can be given to show that the business can continue to trade, and the court will then order that the shares are professionally valued and the remaining partner be given their fair share as a pay-out.
Despite often starting as friends, many business partners are blinded by anger and frustration that leads to unresolved issues.
Some of the common causes of business disputes are:
Or, there are allegations of:
In the aftermath of a business dispute, the common questions that need to be addressed include:
Unfortunately, many business partnerships begin as genuine friendships, so the grieving of a business breakdown is often personal, as well as financial. The flow-on effects can impact on lives for years to come.
Some ways to avoid taking the route of litigation include:
To avoid the drama of a failed business partnership, think about these issues before going into business – and debt – together:
Complementary Skills: Better business success comes from a union of complementary skills – and an appreciation of each other’s skills. Health dependency can be a powerful thing.
Integrity and Trust: Trust and confidence in each other is paramount. If you have doubts, don’t do it.
Create a Pre-Nup: A professionally-drafted agreement is critical for any professional business partnership.
Instead of finding lawyers when it’s time for a costly battle, talk to them now to help you create an agreement that factors in all the potential problems – and how to deal with them.
Running a business is hard work and it’s even tougher when you’re fighting with someone who used to be on your side in your business with you. Choose wisely…
If you have any questions about your finances, either personal or business, please do not hesitate to contact Loans Actually on (03) 8805-1850 or email firstname.lastname@example.org.