Consumer Law, Warranties Loan Guarantee

[Jerry_Blackmon]

I am wanting to open a new business and looking for investors that will loan money on a promissary note. I will not ask for the money until I am completly ready to start building or buying equipment. From the date starting this purchase until I am open will be about 20 days, so this means that things will have to go pretty quick. My question is: If someone tells me that the money will be there when I need it, then how do I hold them to that? And, if the money is not forthcoming, is there anything I can do about that? What kind of contract can I have them sign to make sure the money will be there.

 

[Michael Wechsler]

I am wanting to open a new business and looking for investors that will loan money on a promissary note. I will not ask for the money until I am completly ready to start building or buying equipment. From the date starting this purchase until I am open will be about 20 days, so this means that things will have to go pretty quick. My question is: If someone tells me that the money will be there when I need it, then how do I hold them to that? And, if the money is not forthcoming, is there anything I can do about that? What kind of contract can I have them sign to make sure the money will be there.

There are different ways of going about this and you're probably best discussing your specific case with a lawyer to draft a simple contract that fits your need. The easiest way to handle this is to get the money up front. Other ways includes some money up front where you've got a right to keep a sum certain if the investors back out. I'm also not sure what you mean by "investors" if you are providing them with a loan instrument that involves repayment of money without an equity portion. Good luck with your venture!