Finance - Getting Money
Friends and Relatives

Friends and Relatives

If your friends and family express an interest in assisting you with your business financing, pitch them professionally. Make a sound, cohesive loan request presentation just as you would to a bank or other lending source. Don't be embarrassed to show financial statements, tax returns, or whatever else they want to see. Do anything to get that money!

You will want to prepare a written agreement about any loans. If you don't, bitter arguments are bound to sour the relationship eventually. Even some minor detail, such as the timing of interest payments, can cause great friction if arrangements aren't backed up in writing.

Don't be surprised when your friends and relatives suddenly turn into business tycoons once they have agreed to lend you funding. They may insist on terms that are more stringent than those you might get through a commercial bank!