I am planning a startup. We are building a product. I will be looking for investors. What problems could my personal debt have and what are the solutions? I have a DMP. I have not formed the company yet.
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lots to think about
With a debt management plan in place you may find it hard to attract investors, but then I suspect you know this. As regards possible solutions you have clearly considered a limited company, but give little information on how far your thinking has got. For example, will you be happy to hold a minority of shares? What will be your control or restriction as regards the company money?
Many further questions spring to my mind like just how do you intend to attract investment? How will you explain about your DMP? And why a DMP as your choice, rather than other courses of action.
Lots of questions, to which you must have good honest answers. It is going to be an uphill struggle.
Basically you're going to be screwed...
10 years ago I was financially independent (as they say) but a few bad deals left me in debt and by 2009 with a couple of ccj's
I'm delighted to say that things are very much on the up and up these days and the ccjs are settled and I have a 7 figure personal balance sheet again.
But, it's almost impossible to open a bleeding bank account let alone get any credit!
Only Natwest will bank me. They are rubbish and give me nothing at all, but it's an account (which is more than anyone else would do inc Metro).
Debt of any kind is almost impossible - unless very small and from bottom tier lenders.
I do know a few VCs who will consider stakes in companys like yours but they'll be expensive and will want large equity stakes - but if needs must, drop me a pm with what your business does and how much you're looking for and I'll put you in touch with the right person.