How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Alex J. Your Own Question
Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3666
Experience:  Solicitors 2 years plus PQE
13113900
Type Your Law Question Here...
Alex J. is online now

There, i recently opened a business with a partner and we

Customer Question

Hi there, i recently opened a business with a partner and we already had one before but i stepped down as a director and just focused on this one , since doing so i recently noticed he had been having money from the second business paid into the 1st company's account , since finding this out he has been removed as a share holder and director of my business ,
since taking the responsibility on over the last couple of weeks and running everything myself a few things cropped up that he hadn't paid so kind of dropped me in it and he also went bankrupt so i shall see no money coming back my way from him, Ive looked at borrowing money from start up company's but don't seem to fit most requests.
Ive invested a lot into this company and don't want to see it fold before trading as i have only been open a couple of weeks and am getting interest and more and more is coming all the time but as a lot of money it seems has been wasted at the begging i am going to struggle to cover my rates and overheads for the next few months as my jobs take time to get paid but time is what i am running out of .
any advice would be appreciated as i don't know what do do and running out of ideas but keeping my doors open as long as possible
Submitted: 1 year ago.
Category: Law
Expert:  Alex J. replied 1 year ago.
Hi Thank you your question and welcome. My name is ***** ***** I will assist you. Does the company have any assets currently? Have the invoiced for completed work actually been issued?
Customer: replied 1 year ago.
The showroom is done so assets over 30kAll works completed has been invoiced by previous partner and the money went to the other company that has stopped trading
Expert:  Alex J. replied 1 year ago.
Hi, Thank you. Has the other company gone into liquidation? Have you got any work in progress?
Customer: replied 1 year ago.
I have one job I shall be finishing next week and other business had 50% of that in advance so I get less 50 on completionThe other business is waiting for recivers as the lad didn't pay the money for it to happen instantly so it's in the process now of going into liquidisation
Expert:  Alex J. replied 1 year ago.
Hi Thank you. The money that went to the other company, you will have to claim that as an unsecured creditor of the liquidation. In terms of finance, if you have 50% of a job to come in as payment and you need short term finance have you considered invoice financing? If the company has assets you can offer a debenture as security for the finance? Is there a future work stream if you resolve the cash flow issue?
Customer: replied 1 year ago.
Yes the business can be very successful it's purely time I need
Expert:  Alex J. replied 1 year ago.
Hi, Thank you. Do you need more than £30k in short finance? Kind regards AJ
Customer: replied 1 year ago.
No £25k would be fine to keep it rolling for a while,
Expert:  Alex J. replied 1 year ago.
Hi thank you - if the company has £30k in assets you should be able to offer reasonable security by way of a debenture over the company assets in exchange for a loan or investment. does the company have any existing creditors?
Customer: replied 1 year ago.
I have three credit accounts with places but don't have any outstanding balances there all clear
Expert:  Alex J. replied 1 year ago.
Hi thank you. Thank you do you mean credit cards? Or credit accounts with suppliers? Kind regards AJ
Customer: replied 1 year ago.
Accounts with suppliers ,
Expert:  Alex J. replied 1 year ago.
Hi Thank you. One route to consider may be just financing the business with a credit (personal or otherwise) - while the interest rate is high it is unsecured debt and therefore the credit card company won't be able to claim security over the company assets without a court order - this coupled with supplier credit terms should allow you to trade? The alternative is you bring a new investor on board but they will likely insist on security for their loan by way of a debenture (charge) over the company assets. Is there any chance of recovery of money from the first company? Kind regards AJ
Customer: replied 1 year ago.
I wouldn't be able to get anything back from the first company , but an investor is where I have been looking but not sure where to look to be honest .
Expert:  Alex J. replied 1 year ago.
Hi, Thank you. You need to contact a business transfer agent or an Independent Financial Advisers - they can introduce you to investors or use online forums to find investment. As a starting point do you have a company accountant? Ask your accountant if he can introduce to an IFA that is looking to introduce investments like this? Alternatively your accountant may have clients that are prepared to make this kind of investment? Kind regards A

Related Law Questions