2 min read
Why bring an employee into ownership
Giving a key person equity can secure loyalty and align them with the company's success. It's a common way to retain the talent a business depends on.
Where finance comes in
If the arrangement involves buying back or funding shares, a business loan can provide the cash so the company keeps its working capital intact. Take proper advice on structure and tax.
Get the agreement right
Document the terms — vesting, leaver provisions, valuation — clearly. A well-drafted shareholders' agreement prevents disputes if circumstances change later.
What it means for you
Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online when the numbers work.
Frequently asked questions
Can finance help bring an employee into ownership?
Where the arrangement involves a cash element — buying shares or funding a share purchase — a business loan can cover it, keeping the company's working capital intact.
Should I take advice before giving an employee equity?
Yes. The structure has tax and legal implications, and a clear shareholders' agreement is essential. Get proper advice before making the arrangement.
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Read →Funding for UK limited companies
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