How could this partnership look like?

[Wolf]

I understand that Dave. Everything must be clarified, ESPECIALLY if family or friends are involved.

I just received an email from an investing company. I asked them how financing would look like. Their finance is in the form of a term loan over 5 years at prime related rates, plus a monthly royalty % on turnover. If they do decide to take a shareholding, it will be between 26% and 49%. But usually they don't take a shareholding in such small businesses if they don't expect huge growth.

So I will let my investor know how they would do it and we just follow their example. This is what he intended to do anyway. And it makes life so much easier without giving shares away. Refused to do that with my last 2 businesses as well. (ok, that was much easier since I! was the one who had the money and decided what's going on :-)) Things changed quickly, oops. Whatever, wasn't my fault though

My investor would get back a total of approximately 750k after 5 years. That's 200% profit, which is definitely a fair deal.

[Wolf]

If you want to get a ideas and a bigger picture view on how stuff like this works, I would suggest you research the term : Angel Investor on the internet. It is not a term often used in SA, but it is what you are trying to achieve with this person.

I published my idea on an angel investor network site already and 3 people contacted me so far. I would have to pay to get their contact details, which I don't want to do yet since I first wanna wait what's gonna happen with my existing investor.

But I'm positive everythings gonna work our peacefully since we would do it properly with an attorney and customised contract.