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Had an offer for someone to invest $30,000 for a return of 5% (alien.top)

submitted 11 months ago by Nivsy_21@alien.top to c/entrepreneur@indiehackers.space

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Someone wanted to invest 30k into my landscape company for 5% return, now I’m not the smartest guy out there and someone is free to correct me if I’m wrong but shouldn’t that 5% be until the loan is paid off and not until I give the company up

Again I’m very new to this so I could be looking at this horribly wrong

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[–] badboi0516@alien.top 1 points 11 months ago

Selling 5% of your business for $30k not worth it. Better off getting a loan from your bank. This person will own 5% forever. Your corporate structure will be complicated. (How will you account for and share profits).

Raise equity from outside investors only when you need the money to scale or to share risk.