When you need cash for your business it’s tempting to look for it from your family members.
That might be a good idea or it could be a nightmare.
Tread carefully if you decide to go that route.
If you do, then check out this article called “Borrowing Startup Money from Family Members” by The Young Entrepreneur Council and discover what to consider if you are thinking of borrowing money from a family member to fund your business…
“Starting up with just the next big idea is just that: an idea. In reality, new businesses need money, usually more than that amount initially calculated alongside that very first draft of the business plan. And sometimes, those funds can come from family.
“However, borrowing capital from family members is risky business. Sure, you can always cut bonds with an external investor when a deal goes sour, but you can’t exactly burn bridges with relatives, especially just before seeing them at family gatherings. Even more so, these well-meaning lenders don’t always know what they’re getting into — and what they may not be getting out it in the end.”
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