How to Request/Invoice for Investment

[ptownbro]

We have an agreement with a company to invest in their business. They originally sent us an invoice for that amount, but we rejected it because an invoice is not appropriate for investments (invoices should be for their revenues, receivables).

What can they send us that is equivalent to an invoice for requesting investment?

 

[Werner Reisacher]

First thing first. It would not be advisable for anybody to make investments into somebody's business without having laid out the terms and conditions under which such Investments are made. This agreement must clearly outline the conditions under which such an investment is made. What is the purpose of the investment? Calendar date or measurable % to completion of the project, and amounts due. Limiting the total amount of investment and restrict the use of the funds for project-related costs only. Do you have access to the books to verify adherence to the conditions and the progress? What do you get in return for your money, clearly in more detail than "becoming a participant in the success of the company". What happens if any of the two partners fails to fulfill his contractual commitments. Get a personal guarantee from your partner since he is probably financially protected under the umbrella of a legal entity. Getting an invoice would be the least of my concerns. Getting professional advice from an Accountant or Lawyer is highly recommended

 

[ptownbro]

First, thanks for taking the time to reply. Of course all the things you have laid out have been addressed. Which is why my question is strictly in regards to my original psot. But I appreciate the feedback.

Writing an invoice is not appropriate for this type of transactions. I'm hoping to hear how others have done this.