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Thread: The long an winding road....

  1. #1
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    The long an winding road....

    Hubby has existing cc of which he is sole member. Business had been running for 12 years, 9 of which was as a sole proprietor. Business has taken a knock over the past few years due mainly to bad advice, recession, staff theft , etc. These problems have now led to him owing SARS a lot of money, mainly for VAT. There is no other debt in the business. There is much potential to increase business and even open new shops but mostly he is being held back by the fact that he is not vat cleared.

    My brother, bless his soul, is happy to put the required amount of money into the business to get vat clearance because he knows the potential of the business. I have asked him what kind of agreement he would like to enter into for this amount of cash and he says we have tell him what offers?

    Hubby works in business fulltime and is on call 7 days a week. He currently has one fulltime employee. I am the home executive/accounts person. Brother will not be working in business at all. What kind of agreement can we enter into with him?

    Your advice will be much appreciated, thanks.

  2. #2
    Site Caretaker Dave A's Avatar
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    May 2006
    Durban, South Africa
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    An interest bearing loan agreement is probably the simplest way to go.

    Giving an interest in the business... partnerships bring in lots of complicated dynamics. Given this is family, I'd strongly suggest keep it simple, for the sake of future relations.

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