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Rayner my parade! The importance of specialist advice.
Jemma Brimblecombe
The grandly titled Coronavirus Business Interruption Loan Scheme (“CBILS”) was announced by Rishi Sunak as part of his first budget on 11th March. Sunak, in the position of chancellor for only a matter of days, set out a series of plans which he claimed would represent the biggest fiscal boost to the economy in 30 years, and which were also intended to protect the UK economy from the impact of Covid-19.
You own your own home, and potentially have a second investment property. You make the maximum payment you can (while still receiving tax relief) into your pension each year and have funds invested in the stock market. You have maxed out your yearly ISA allowance, using it as a tax efficient wrapper for your investments into stocks and shares.
So, you're a founder of a start up business, you've worked hard to get it off the ground and you have even found investors who are willing to provide the funds you need to grow your business and achieve your goals.
Convertible loan notes are a great way for start ups to generate an initial chunk of cash in order to advance certain aspects of their business, at the same time as they try to secure a direct equity investment. As a result, convertible loan notes can act as a short term solution to financing needs and, once in place, can be an indication to future investors as to the potential of the business.
You have successfully incorporated your new startup company and are all set to grow your business. What is one of the first things you should do? Without a doubt, if you have two or more shareholders, you should consider a shareholders’ agreement. It is easy to postpone putting a shareholders’ agreement (aka founders’ agreement) in place, but it is important. Why? Because it can regulate how changes in the company in the future will be dealt with including how decisions will be made, what would happen if a shareholder wanted to leave or became ill and, most importantly, what would happen if the shareholders had a disagreement.
Jemma Brimblecombe
Charles Richardson
Oliver Oldman
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