Investors

[FSN]

What is the name of your state? Virginia

I'm in the process of starting a business and may come across the chance in receiving $10,000 in start-up money. I wanted to know what is the most common way for such a loan to be payed back on (i.e., payment due date, interest, profit percentage, etc etc). Would such a payment be deemed company expenses or accounts payable?

 

[vrzirn]

- Repayment is a "fixed operating cost". The venture capitalist may also require a percentage of the business.
The terms of repayment are flexible and nothing is "common". It is what the two of you agree upon. Perhaps he may accept a portion in cash+ interest over a fixed period and the balance as a % interest.