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How to split costs of business startup loans

It is a messy world out there.

I'm a new entrepreneur ( soon to be entrepreneur) with a partner. I'm looking for a far scheme to split money from our business.

We are both bringing money to start up the business. My partner has more money than me. I will have to leverage my house. It will cost my partner about $210 per month to get his portion of the money to start the business. It will cost me, $800 per month to get my portion of the money.

After we split profits, I'll give $800 back to the bank and my partner will only be giving back $210. That leaves me feeling like the business structure isn't fair. I'll end up with about $400 per month spending money and my partner will end up with $1000 per month spending money.

So, I've asked my partner to make the business pay the banks, for the money we pulled out, to start the business. After the business pays the banks ( just like a business loan ) - THEN we will split the profits. We will both end up with the same amount of spending money each week.

Is it far to make the business pay the banks back, for the money we pulled out?

Thanks, RB

Reply to
rbergsten
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IMHO it is not fair to penalize your prospective partner.

More important though is the fact that you anticipate that you will only clear $400 per month until the loan is paid and then only clear $1200 per month. You would be just as well off with a minimum wage job without having to put your house and/or credit at risk.

Unless there is realistic potential for substantially more profit I think you and your partner should keep looking until you find a better opportunity.

HTH Jerry

Reply to
Jerry Gitomer

Reply to
rbergsten

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