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Scottish Trust Deed Forum
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Topic starter
23/04/2009 11:46 am
Hi There
I was wondering if someone could give me some advise. I have had a Trust Deed for the past 9 months or so and have been approached by a family member to start a small buisness. This would be a small buisness opertating on evenings and weekends (I would expect mostly weekends). We would not require any business loans or overdrafts as we already have most of the start up equipment and anything further would not be of a great cost.
I am just a bit worried that it would effect my Trust Deed and I would have to pay back all money previously owed to my creditors.
Any help would be greatly appreciated.
Thanks
Angela
23/04/2009 12:07 pm
Hi Angela,
Welcome to Trust-Deed.co.uk.
I see no issue at all with opening up a business while you are in a Trust Deed. I'm interested to see Mark or Kevin's comments on how any extra income you generate will be treated.
The other question they may touch on is what would happen if the business was succesful and becomes an asset over which you have some form of ownership. Are you likely to be a shareholder of the new business?
Best of luck with the business by the way.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
23/04/2009 12:17 pm
Hi
Thank you for your quick reply.
Yes myself and my aunt would be joint owners of the buisness so we would have 50/50 shareholdings.
Thank you for that, I think we will need all the luck we can get when starting.
23/04/2009 4:21 pm
Hi devilchick (great name)
There are 2 things to look at. If your monthly income rose, then the Trustee could look for an increased contribution. Secondly if the value of your shareholding in the business rose to a significan level, then he could look at an interest in this also. The value of the shareholding is business value less all business debts, divided by 2.
Hope this helps.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
23/04/2009 6:25 pm
Mark,
From that perspective would it be an idea for Angela to consider taking a profit share via salary rather than a shareholding?
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
24/04/2009 9:42 am
HI TDA
I don't think it makes a huge difference. It's probably unlikely that the IP would look for the value in the shareholding and would be more likely to just monitor income.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
Topic starter
24/04/2009 2:56 pm
lol thanks, easily remembered.
If they were to look for an increased contribution would that mean that they recalculate the amount repaid to the creditors.
Also would I be eligible for a buisness account? we do not want any kind of overdraft or loan facility, just a business account that has a good rate..I was looking at one with the Abby, do you think I would be accepted for that as I have been told there criteria is quite high, and would it help the fact that my aunt has excellent credit ratings?
Thanks
Angela
