Taking out $20k loan for startup costs and I want to offer ownership shares to one investor who’s lending me half ($10k) but need advice on how to structure it please.
I know nothing of what to include, whats a typical percentage and for how long. In case it factors, their loan will be very low rate or interest free, tbd.
Are ownership shares even common for such a low amount loan? Is there an average?
Any advice is helpful. Thx.
It’s very rare to find small startup loans. Typically business ownership is tied to what the business is valued out. So let’s say the company is worth $100k in the first year, a $10k partner buy in would be 10% owner. That said, you need to discuss all of this with a general business attorney.