As families gather for the holidays, entrepreneurs might consider approaching family members for money to help fund and grow their business.
But is family funding a good idea?
Maybe.
Considerations include the amount of money involved, how involved the family members will be in the business, and the personal relationships between the borrowers and lenders.
Advantages of Family Investors
– They are not likely to conduct background checks or review credit scores.
– Relatives will do you a favor, banks and other professional lenders will not.
– Loans are often made at no interest. (more…)