Choosing the right business partner is very important for a plethora of reasons, starting with the fact that you need someone you can work with, someone who cares about the business and someone who brings new skills to the table. You need to have the right person for your business to be successful.
That said, you also want to consider the negative side of partnering up with the wrong individual. They may take actions that deliberately harm you, often for their own financial gain. In some cases, this could take the form of illegal fraud.
Using accounts for their own benefit
One way that this happens is when they essentially commit theft. They take money out of the company accounts in fraudulent ways.
Remember that fraud requires one party to lie in order to financially harm the other. For instance, your business partner could tell you that they’re taking $100,000 out of an account to purchase a new order of parts and materials for the business. Instead, they pocket the money.
This harms you on multiple levels. The company loses the money that it had in the account. You also do not get the parts and materials you were counting on. This can cause other delays, and you may lose sales. You’re losing revenue along with the cash that you had on hand.
For many businesses, something like this can be crippling. It can be hard for the business to ever recover from this type of fraud, even when that business partner is replaced. If this has happened, you absolutely need to know about all of the legal options at your disposal so that you can protect the future of your business.