Founder asked me if I would be willing to loan the company some cash if there was ever a time when money was tight. I said I could probably swing it and then he never brought it back up so I thought things were good. Two days ago I found out another employee actually made a short term loan of approximately $1000 to the company about two weeks ago with no official documentation . He said the loan was supposed to be paid back this past Friday, and that he sent an official invoice to the founder for repayment a few days ago, but hasn’t received any amount of repayment and no communications about when repayment would be made. This makes me feel bad and uncomfortable for my colleague. I think I know what the community response will be, but it would be helpful to see any thoughts, comments, concerns, opinions, and questions you all might have. Thanks
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If you make a loan, make it convertible note. Don’t do straight loan.
I can’t decide if I am more concerned with the fact a company with multiple employees can’t come up with $1000 or that the company is trying to borrow money from employees
The context is missing. Sometimes a company raises money via convertible notes and lets employees get in on the offering. This is rare but not unheard of. In either case it is illegal unless the employee can prove to be an accredited investor.
Not a convertible note. I actually also have a degree in Finance and based on what my colleague told me it was more of a “Company Has a Bill Due and the Coffers are Being Refilled in a Couple Days” type scenario. Plus given that the founder new I had some liquidity I said I’d be willing to share, it’s difficult for me to believe it was an internal form of raising capital.
Start applying.
Wow
There are official ways to do this. Read: bonds and stock offerings.
I think It’s not even a company or anything, founder is trying to do something with an idea that he got while peeing, if you like it contribute technically and financially otherwise gtfo, not worth it. Did you got tempted by advertisements like “looking for technical co-founder” or something similar and joined?
More of a bait-and-switch. Was told I would be designing control systems and then when I moved out here founder explained that software infrastructure needed to be built before control systems were designed
Your founder puts the F in GTFO.
Make sure your paycheck won’t be bounced
GTFO