Can an individual other than designated partner Finance in LLP?

Can an individual other than designated partner Finance in LLP?

Absolutely Yes !

Depending on its source we may classify finance into two types

Equity Finance: Basically its owners Investment in the business. This is what partners bring into the business for their part of ownership in the venture.

Debt Finance Involves funds borrowed from creditors and also includes investment not in exchange of stake in your business, such as bank finance etc.

So if an individual who is not a designated partner wants to invest in your LLP, he/she can do so by investing as a lender.


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