Ok, so without financing my friend, I'm basically back to square one with the amount of work I'm carrying out myself, so the business isn't moving forward. I want to come away from working a regular round and start building the business by growing the franchise side of things.
Bit if a risk, but his situation is complicated. The company he paid an IVA to went bust so he wasn't given the appropriate paperwork to say he's in the clear. He's been fighting this for 2 years to get it cleared and his credit rating isn't that bad at the minute, just he's still not been signed off from having paid an IVA.
I realise I can't legally charge him interest, but there are ways around it to make sure we get 4% on the loan which I think is beneficial to both parties. (He would have paid 8% on a business loan).
He's only currently earning £18k per annum, I'll start him on £30k so he'll easily be able to afford the repayments, even after my 20% he'll be earning £24k, so £6k leeway to pay a loan of around £4K each year for 5 years.
This hasn't factored in growth, that I would expect to have him on at least £40k turnover by the end of this year, and that's being conservative.
He's starting on 1st march and really looking forward to it. He works at a gym as a personal trainer at the minute, so is fit for his age 42