Thread: How can I accept an offer to become a partner?

I've been trying for months to get a small business loan. Or any loan for that matter. To acquire some cleaning equipment. I'm a startup with previous bad personal credit. I thought my options and hopes of becoming my own boss where slipping away when I got an offer to form a partnership. I rent a storage unit from a guy who likes side ventures. He has a few real estate properties and a few storage places. When I found the place we where talking about what I would use the unit for. Said it was for a carpet cleaning company and I would store my van there because I can't leave it at my house due to the hoa. I came in to pay him rent for a unit that at the moment am not using and he asked how things where going. I told him that I still don't have a van/equipment and the unit was vacant. He asked why. I told him I was unable to secure the startup capital needed for the equipment. He then offered the amount that I need and said when I'm ready come back to talk to him. At this point I'd really like to start cleaning but don't know how to go about this. I wasn't looking for a partner, but I don't have any other options if I still want to clean. So what sort of terms should I set if I do decide to go through with this. Any input from anyone would be highly appreciated.

Sounds like a loan not a partnership. Borrow funds a 10% set it up for a 1 year payback give him a lien on equipt.

I would not do a partnership like that, varify that you want a loan and work out the details if he confirms that it is a loan. Since he has properties I assume that they would need cleanings, if it is a loan then you can clean for him towards the loan or as an intrest sort of deal.

Thanks for the input. I'll see what happens tomorrow and let you know.

My humble thoughts:

If you take a loan pay it back as soon as possible.

Set up terms that you can afford, not terms that will get you the loan - there is a big difference.

If possible, avoid giving up a percentage of the business.

If you're already excited about this, don't be - everything is talk until there is money on the table.

Don't be cheap or dumb - get a lawyer to do the paperwork.

Hope everything works out for you.

I'm in Palm Beach County. Thanks for the input everyone. Steve I'm reading your links now.

As a former CC partnership, my solemn advice is to avoid a partnership at all costs.