Starting a partnership with a person in the same field. I bring 50% of the start-up costs. He brings 50% but it is a loan which is deferred for three years. The question is, how do we split the profits? Obviously I will have three years' benefit of a sum of money without which I would not be able to start up alone. However I am investing my money and expect a higher return than I would if I had taken out a loan, so I'm reluctant to accept 50% of profits less repayments.
I'm sure there is a clear way of thinking about this: what are your thoughts?
you can split the profits in whatever proportion you like speak to your accountant and get it written into the partnership agreement you can change the percentage whenever you ike - to adapt to changing circumstances