Join our investing community

Private company investment

Discussion in 'Business & Startup Investing' started by AndrewM, 1st Dec, 2010.

  1. AndrewM

    AndrewM New Member

    Joined:
    1st Dec, 2010
    Posts:
    3
    Location:
    Adelaide
    Hi guys,

    I'm looking at investing in a 5 year old, very successful company.

    As for funds - I'm looking at investing approx $100-$125k. I have $30k savings at the moment. However, after looking around, it appears as though I can't easily get a loan for an investment, unless it's for stocks/funds, etc.

    What would you all suggest? The options I am considering, are;

    - Business loan, directly for investment
    - Cash loan @ 10%
    - Business loan for a startup registered company, which the primary function of the company is direct investment in the other company.

    What are your opinions?

    Cheers,
    Andrew
     
  2. Terryw

    Terryw Well-Known Member

    Joined:
    9th Jun, 2006
    Posts:
    653
    Location:
    Sydney

    it will be very difficult.

    The banks will ask what is the security for the loan? I assume you don't have security, if you do you could just get a LOC on the property and then use those funds.

    Without security you will be looking at a personal loan - probably about $30k max.

    Another option may be vendor finance. Ask the company can you pay the loan in stages out of your share of the profits.

    And, be careful. I have know many people who have lost huge amounts of money by investing in companies which they do not control.
     
  3. Gfaw

    Gfaw New Member

    Joined:
    13th Jun, 2012
    Posts:
    1
    Location:
    Chicago
    I have lost confidence in the banks, but keep money at home - is not an option. So I invested in Necker Anlagen Initially, I worried that the investment fund - another scam. I was afraid that a few months later they declared bankruptcy, and say goodbye to my investment. But it took several months, during which I steadily replenish an account, now I took part of the amount, the rest left in the account. I made withdrawal quickly and without problems. I have a profit of 10% a day.