Venture Capital document help

Discussion in 'Starting a Business' started by drwharton85, Apr 4, 2010.

  1. drwharton85

    drwharton85
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    I am starting up a Restaurant franchise and I have a couple of investors willing to invest upon loan approval. Since I will not be investing any personal cash and only offering overall handling of the restaurant will i need some kind of written proof from my investors to show the bank for loan approval? Do I need to secure the funds and work out the contracts with the investors first, before going to the bank? If so which documents do I need to fill in and where do I find them? Thanks for any help.
     
  2. Fergal

    Fergal
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    Welcome to Business Advice Forum drwharton85, thanks for joining and for asking your business questions. You raise an interesting point regarding securing funding for a new business - most investors will want to know where the rest of the funding is coming from, before they will invest.

    Investors (including banks) will be careful to avoid a situation where they put their funds in, only to find that the business is in difficulty because it is under funded. Hence, most funders will want to see written confirmation that other funding has been agreed, before they will invest in the business. Your bank may not require written contracts between you and the other investors at first, however, they would welcome letters from the investors, confirming that they will invest in the business and how much they will invest.

    What kind of people have agreed to invest in your business, are they friends / acquaintances or business investors?

    You might find the threads below helpful, with regards to confirming an agreement with your investors;

    Advice needed - Investing in start up
    Need Information about Venture Capital
    How to Look for a Business Partner

    Good luck with everything and please do post back with your thoughts and updates.
     

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