Should i get a loan to help a small business back on its feet?

through some general networking i came across a used car dealership which recently went through rennovations. The business has been running for quite some time now and the owner is looking for someone to invest in his business because he is running low on money. Would it be wise for a person with good credit to take out a loan in their own name to invest in a used car lot? The owner owns all the vehicles in the lot.

The dealer needs the money to invest into more automobiles. He is willing to give me a stake in the company for the investment. I have good standing credit so i plan to use that to my advantage. I plan on proposing to the dealer to sell to me the portion of the company he has for sale for one dollar (under the stipulatuion that if i do not purchase the said amount of the share in 60 days for full price then ownership falls back into his hands) and then i go to a bank and take out a loan, citing the share of the company as collateral. Then, we will sign a second contract that stipulates his repurcahse plan, depending on the intrest rate of the loan and how much money he is willing to pay me to be a short term investor in the company. In the end he would stay owner of the company, he would have recieved the money he required to stay afloat, and i walk away with profit. If he defaults on his payments to me then i can give the bank my collateral- the cars from the lot that i own.

I would be very careful, if I were you.

1) Second hand car dealership is very high risk, so you need the prospect of very high profit.

2) What security is he offering? If he has to give you his cars in the end, how much are they worth and can you easily sell them at that price?

3) If I were in your place, I would require 20% pa interest and the loan secured against property or quoted shares, worth 20% more.

No, dont do it. Like you say, the owner owns all the vehicles in the lot....NOT you.
Its tempting to play the business man/trouble shooter, and good for the ego, but if this guy cant raise capital, except for "networking" there's a problem with it.
This banks are mean dont care is rubbish. Anyone who can back up a loan is going to get finance somewhwere. Why he's asking you shows everyone else has refused, because they have bigger plans...take over his lot, its all a big finance conspiracy right?
You havent said what you get, a share? part ownership?
Sounds like he wants to risk YOUR money (after exhausting his) to bail him out personally, for HIS car lot.
Forget it, look at commercial press to simply buy a lot of your own, some ground to turn into a car lot, ..hang on..you dont know anything about car lots.....EXACTLY!!!!!!!!!