Reasons for Having a Sleeping Partner

• Sleeping partners can be a useful source of short term finance if an already existing partnership is having money problems.
• Sleeping partners provide instant finance to businesses who are in the process of setting up a partnership.

Definition

A sleeping partner is a person who invests money into a partnership, but isn´t involved in the day-to-day running of the business. However, they still get some of the partnership´s profit.