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    3 Replies Latest reply on Nov 10, 2007 9:35 AM by ChuckRansom

    Borrowing from family

    LT Lawn Care Wayfarer
      Some unsolicited advice. I was talking to another friend who I invited to join the board and I am not sure if he has but he wants to start a business and was unsure if he should ask a well to do family member for a loan.

      I will tell you this, since I have hear mixed messages on the board about this. Borrowing from family is a good thing when done right. After my first two years in business I got into a bit of trouble with finances and didn't want t borrow another dime from the bank so I got a loan for 15,000 from my uncle for equipment and to make payroll for two months.

      Before I took his money we signed a written contract, that I was obligated to, just like you would any bank. I paid him back on time and with much less interest than any bank would charge. Now I am not saying don't borrow from banks, I am just saying family is a good option.

      I'd love to hear thoughts from others who have borrowed from family.