Million of business pop across the whole world each year. starting a new business is expensive and beyond financial means of many. How do people get money to start business of their dreams, through friends and family they are the main funding source. If you're worried by the though of asking someone you know for a loan.
Why You Should Mix Family, Friends, and Money
It’s a common belief that you shouldn’t borrow money from friends and family, but TrustLeaf co-founder and business development manager Daniel Lieser says that’s misleading advice. Many corporations today wouldn’t have existed without help from loved ones. TrustLeaf was specifically created to facilitate business loans from friends and family to entrepreneurs.
Perhaps the greatest concern of entering into a borrower-lender relationship with a loved one is the fear of ruining your relationship. Lieser says you can avoid that by discussing the potential risks, not overpromising, and being “clear and honest” about your expectations upfront and in a written agreement. This, he says, can prevent “relationship-damaging issues associated with non-repayment. A signed, written agreement with all the terms in black and white may not be the most fun document you’ve ever created, but it will save you dozens of headaches in the future.”