bit shocked
jkc
Registered Posts: 166 Dedicated contributor ๐ฆ
my sis has taken on a new biz partner, asking for 1500 for
his half of the biz, but hes paying in bits, and bats from the
profits. but whats concerning is the fact hes mentioned massaging
the figs in order to get a mortgage, and hes opened a business account
in the business name with out her consent.
any advice thanks
his half of the biz, but hes paying in bits, and bats from the
profits. but whats concerning is the fact hes mentioned massaging
the figs in order to get a mortgage, and hes opened a business account
in the business name with out her consent.
any advice thanks
0
Comments
-
Worst limerick I've ever read: too many syllables and doesn't even rhyme.
(Sorry, couldn't resist...)0 -
-
JKC,
My advice to your sister is to talk to her partner now, before she finds she is involved in something which she may later regret.
I would firstly challenge the partner regarding opening the bank account. Who is on the mandate? What type of account is it? If a current account, has there been any loans or an overdraft arranged? Is there already an account opened for the business? She needs to consider a worst case scenario, could the partner take funds or run up debt in her name? What safeguards does she need to consider? Both signatures on cheques or withdrawals? A maximum limit for values? If your sister is not happy with this bank account she needs to take steps to disassociate her business from this account. The bank should be able to offer advice.
Regarding massaging figures for the partner's mortgage: I would be very careful not to allow myself or my business to collude with this person. Your sister may want to review how much she needs this partner in her business. She needs to be very very careful.0 -
Apologies for my first flippant comment, once again Cullen has shown me the error of my ways.
Essentially, I agree with Cullen. An investment of ยฃ1,500 isn't much from a partner who's bought himself a decent enough job title to (allegedly) help commit mortgage fraud and (possibly) defraud banks into parting with money. Have new company credit cards been applied for? The paying of the investment in bits and bobs also means there's very little risk from him now but potentially a great deal from your sister who could become complicit in any future trading irregularities, knowingly or otherwise (and let's face it, it would be fairly knowingly as she's already suspicious of "dodginess").
Clearly, alarm bells are ringing very loudly for your sister, for you and for us: doesn't that kind of say it all?0 -
Hi
thanks, I really appreciate the advice, you have confirmed the seriousness of the situation. basically the business has only been running one year, no assets and no premises just
a small loyal customer base of about 600.
I advised against taking this partner on as soon as I heard the details.
the accounts been set up in his name and the business name, the bank want to see
evidence of activity in the account. The statements will go to his address. he also wants to
buy laptops, phones to increase assets as soon as possible.
The business hasn't even been signed over yet.
apart from the money he has paid ( which is dubious ) would he be entitled to any other
compensation and would there be legal implications if she decides to exit the agreement.
thanks again0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 323 NEW! Qualifications 2022
- 165 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 88 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 272 VAT
- 92 Software
- 273 Tax
- 135 Bookkeeping
- 7.2K General accounting discussion
- 200 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 582 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership