Business advice/help with Investor

Discussion in 'Growing and Managing a Business' started by shr3k, Apr 29, 2014.

  1. shr3k

    shr3k
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    Hi Everyone,

    Long story short, I decided to set up a company while at University with a fellow course mate and an older friend who had his own company and multiple properties.

    We ended up taking an investment from the friend of £3,000 for 20% leaving the shares as 40% Director (Me), 40% (My Fellow Course mate) and 20% (Investor Friend).

    Now 3 months on we have secured 2 Website deals and a long term SEO Deal and the Investor has already asked for £1000 back of his investment. We never really talked details but I always thought he would take shares of the dividends which have already happened, we paid out £1,250 last month as (£500 + £500 + £250).

    I was counting on the £1,000 he has now requested for advertising and moving company forwards?

    Any advice would be appreciated, I am close to walking away and starting fresh but not sure that is an option?

    Thanks
     
  2. RoseAb

    RoseAb
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    If he invested for equity then he gets 20% of profits.
    Otherwise if it was a loan then you pay it back but he has no equity.
     

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