How not to lose your business

For many companies, attracting a strategic investor is one of the main, and sometimes the only way to develop a business. The most bright hopes are associated with his appearance, but they do not always take into account that an unscrupulous investor may have his own plans for the company in which he invested money. Lenders can also be a danger to your business. In order not to lose their business, entrepreneurs should always be clearly aware, respect and protect their commercial interests.

Instruction manual

1

Do not be too gullible. Gather as much information as possible about the investor before entering into a transaction. It is possible that on his account are already listed companies absorbed by investing, and you can become a potential victim. Do not disclose to the prospective investor confidential commercial information that is not directly related to the transaction. This is especially true for information about customers, suppliers and customers.

2

Do not save on competent legal support for such transactions, the conclusion of which should be formalized with documents that can later be addressed to the court. If you transfer confidential information to the investor, enter into an additional agreement on this and keep confidential information that may impede the absorption process of your business.

3

But you can lose your business not only by letting a strategic investor into your company. There are cases when lenders and, in particular, banks that provided loans to the company acted as invaders. The most banal, but no less valuable advice that can be given in this case - you should not allow late payments on loans, which are an "insurance case" and give the lender the right to reject your property.

4

Overdue debts can be artificially generated by the lender. This is done simply - it is enough to indicate in the loan agreement the details of the recipient, and you risk not returning the borrowed money at the time specified. In this case, severe penalties begin to apply. Company property may be seized and penalties may be made in respect of company assets.

5

Think well before attracting investments or taking large loans to grow your business. Consult with lawyers regarding possible financial risks. If you can do without attracted funds - do not use investments and loans and try to do it yourself.