TWL is a business that manufactures and sells electric road bikes and which Horatio recently incorporated as a private limited company. Horatio is the sole director and shareholder, owning 100 1 ordinary shares in the company. Horatio started the company with 200,000 start-up capital. There has been considerable interest in the electric road bikes the company manufactures and Horatio wishes to grow the business. He has been in talks with former professional sportsman Carl Cavendish, who wishes to invest 200,000 in the company in return for a significant shareholding. He has indicated that he wishes to be involved in the running of the business and that he would like to see a return on his investment each year. Carl has also offered a loan of 500,000 to enable the company to purchase a property from which to manufacture the bikes and to operate as a stock warehouse and sales depot and 600,000 to purchase a new state of the art manufacturing machine. He would like to secure the loans and has suggested fixed charges over the building and bike stock.

Question : Consider the issues that Horatio should consider in relation to the proposed investment and loans from Carl.

Fifteen hundred words are required.