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bigduckontax
bigduckontax, Accountant
Category: Tax
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To conclude an acquisition we need to transfer the vendor's

Customer Question

To conclude an acquisition we need to transfer the vendor's bank and crowd debt loans liabilities to our company. How best to do this?
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. You merely record in your books of account the relevant bank debts and crowd debt loans from the acquisition. These will all be creditors in your accounts until the loans are paid off. The contra entry would be the consideration for the transaction. I do hope I have shed some light on your conundrum.
Customer: replied 1 year ago.
I didn't make it clear. He has guarantees which we are willing to take over. How do we persuade the bank and crowd lender to transfer them?
Expert:  bigduckontax replied 1 year ago.
A complex and difficult negotiation will follow. The bank and the crowd lender will have to be assured of the financial probity of your organisation and its ability to service and repay the loans by the due date. These organisations will have to investigate your credit worthiness before assigning the debts to you. It is really out of your current modus opperandi, but has to be endured.