I was involved in the past with a company that went into Receivership, will this count against me?
The short answer is No it won't as long as you mention it very early on in the due diligence process.
Now I should stress here that there are two sides to Angels Den investing;
There is the Equity side where investment comes into a business on the back of an idea or concept proposed by you as an individual and then there is the property deal where the focus is on the property, land or buildings.
In each case, if there is a limited company owning the assets or the intellectual property and there is a team of people behind the project, then your past experience can count for a lot but your past errors count for less.
If the business is you and it relies on you and only you can make it work, then firstly that’s a dangerous place to be in from an investors point of view. They will not want to see one person holding all the cards and so you are less likely to secure investment until you can fix that by bringing in more people or by creating systems and processes that reduce the reliance on any one person.
We have seen a scenario where the investor was made aware of the entrepreneurs poor financial history and invested anyway in the idea and put his own man in charge of the finances. This was great news for the entrepreneur as it freed him up from accounting and paying bills which he didn’t want to do anyway.
The same applies to CCJ's
As long as you mention that you have them or had them then the issue can be dealt with.
We have had situations where an offer of investment was made as long as the existing CCJ, which was about £5k, was cleared off first.
As with any different situation, different circumstances will apply. If there is a poor credit history, an investor or lender may seek a higher interest rate or some other form of security.
The main point to take-away from all of this is that past mistakes can be dealt with or even forgiven.
Every investor or lender (especially Angel investors who have run their own businesses in the past) will have been on the receiving end of some form of financial threat. Some of these threats turn into court action which in may cases may be valid or in many cases might be frivolous; whatever the case, they have to be dealt with and life goes on.
This and many more subjects will be expanded on in the Raising Angel Finance Course in Peterborough. For more information contact; karlenepartridge@progressiveproperty.co.uk
Ray is a shareholder of www.AngelsDen.com and Property Angels Den where investors are introduced to entrepreneurs or developers seeking finance.
If you have a property proposal click here: Application form page: http://www.RaisingAngelFinance.co.uk/investment-application-form.html
If you are interested in becoming an Angel Investor, Click here: www.WestStreetCapital.co.uk or : http://www.becomeanangel.com
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