i purchased a restaurant for 30,000 the guy said give him half 15,000 and the rest in payments of 2,000 a month. i'm almost at 2 months late...

Question

i purchased a restaurant for 30,000 the guy said give him half 15,000 and the rest in payments of 2,000 a month. i'm almost at 2 months late on paying him. the lease is under his name but the bills and business license under mine. he wants me to give it back and when i come up with the money he will give it back. he wants to run it but every thing is mine food plates napkins and employees. what can i do

Answer

You should hire an attorney because you need to protect your ownership interest in the business and you should not just go along with what this individual is requesting that you do. I would need to know some more of the facts of the case to advise you so feel free to call me for a free 30 minute no obligation consultation.

Answer

No written contract? Ouch! Your dealings seem altogether too informal.

I don't know whether you should hire an attorney or not. I think the first thing you need to do is take a hard look at the economics of this restaurant. You have at least $15,000 invested in it so far, probably a lot more if you own the furniture, equipment and inventory. You now owe $4,000 in purchase payments, with more to follow. Are you making a profit? Enough to justify paying the rest of the price? Maybe the numbers say you should dump it. Maybe the seller's idea has some merit (but get it in WRITING!!!). Maybe you should borrow enough to bring yourself current on the rent.

In any case, you apparently are undercapitalized, and you either need to struggle with the finances for another six or seven months, or sell (or give?) it back to the seller. Hiring a lawyer will add another expense.

One thing you might consider is a small-business loan, or a partner. But basically, the first thing you need to do is figure out whether this business has a future, or is a loser. Businesses with futures can generally be financed somehow. Businesses that are doomed to lose money can sometimes be financed, but end up in bankruptcy.

Whatever you do, get your deals in writing, signed by the parties.