I'm not sure if this goes here or in the Credit Act board, but here goes anyway...
If I were to invest directly into a business, thereby helping a person to start up their own business, and for my investment receive a share of ownership in the business, I am exposing my money to a certain (possibly large) amount of risk.
If however, I was to rather purchase the capital equipment in my own (or my own business) name, and "rent" it to the new startup business of the person I was helping, with the proviso that after X period of time (once I have recovered my investment with interest) the ownership would pass to the new business, would my money firstly not be a lot safer (if the equipment remains my property for the duration of the "rental" period.)
The term "rent" here would surely more appropriately be "lease," but would I then be required to register as a financial services provider??
How else could I "invest" in a startup business and still achieve a return on my money while still protecting it.
Any ideas and/or input would be appreciated.
Thanks,
Dan
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