Personal Loans

The quickest funding method is to get a friend or family member to write you a check. While this solves the immediate problem, you have to be aware of the responsibilities and rules that go with it. When accepting money from friends or family, make sure they can afford it, should the worst come to pass and they lose the loan. You also need to ensure that a loss will not wreck the relationship. The fallout is often wider than just the person with whom you did the transaction. If you can't satisfy both these criteria, don't ask for or accept a loan, even if it's offered.

Set down in writing the fact that the money is a loan and what the interest rate and the repayment terms shall be. Additionally, agree what the procedure is should the money need to be called in at short notice. The best time to iron out such details is in advance, before you accept a penny. If there is risk associated with the loan, consider issuing shares against the money. The inherent risk is then often better understood than a straight loan that someone might naively presume to be watertight or secured.

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