If I loan a business some money should I be able to see their Financial Papers?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

If I loan a business some money should I be able to see their Financial Papers?

The owner of a small business passed away and left the business to his children.
The business owes me money for a loan. I would like to see their Profit Loss and
Balance Sheets to work out a payment schedule

Asked on May 11, 2017 under Business Law, Oregon

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

No, you have no right to this unless when you loaned them the money, the loan agreement they signed specifically gave you the right to see this information. Otherwise, just because someone owes you money does not let you view their financials. (For example, do you have a credit card? If so, when you charge something on it, you owe the issuer money...but that does not let them come in and look at your bank account or tax return.)
If the loan is not paid on time (i.e. when, under the terms of the loan, payment(s) should be made), you can then sue for its repayment, based on "breach of contract": the loan is a contract. If the loan was to an LLC or corporation, you'd sue the LLC or corporation. If you loaned the deceased owner personally, you can sue his estate for the full balance of the loan, since now that he is dead, he *cannot* continue paying the loan--i.e. a personal loan or debt comes due from the estate when the borrower dies.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption