Obtaining a loan from a friend or family member to launch a business is perfectly acceptable. Nobody is more familiar with you. They will also typically provide you with better, more flexible credit terms. Still, do you believe it is a smart choice?
Is it advisable to borrow money from family members to start a business?
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Yes, I even prefer this way than borrowing from the bank. You would get little interest rate that's if any and you might not be under pressure to pay back
There is absolutely nothing wrong with funding your business with loans from family members. In fact, that is the only loan I would easily advise someone to take. If the business doesn't do well, there would be no pressure to pay back.
You can even discuss with them to find out if they would fund your business without needing interest
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Borrowing money from relatives is, in my opinion, way better than taking out a bank loan. They might be willing to lend you money with no interest.
I got money from my mum to start my business. Although, I paid back but it took me two years to pay back and no one bothered me.
That's the most advantage you need to go for loans with low interest for your business if you have the opportunity to do it wouldn't be a problem.
It is advisable if there is solid bond and good relationship. Not every family is in peace and harmony. In my family, i prefer to borrow from the banks because there is a enmity in the family. There is grudges and jealousy between my family members
it is advisable to use anyone that you are close to, even to let your enemy know about your borrowing isn't advisable they can thwart the process.
I feel not comfortable borowing money from family but it can work if your family is rich or they won't hesitate helping you
Yeah you just have to know who you are asking for money. Try to meet that wouldn't see you as a nuisance and you would be good with it.
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It is better that way though I have not experienced borrowing money from my family or siblings. They are the ones borrowing money from me without paying me, so sad.
Hahaha that's family for you. mu cousin got my 30k for about 5 years now and no refund from her
I think it can be done if they support your idea, because if they are against it, they will give you the funds, but they will be very demanding and will even be happy when you fail and they will put pressure on you
it can be termed as one of the best idea. You would be able to get a loan without having to pay interest or a high interest rate.
If there is any form of borrowing that I would back you up to use and start a business, it is loan from family members. They won't arrest you or seize your products in case of defaults.
When I was in college, I borrowed money from my older sister to increase my trading capital, but when it came time to pay the debt, she refused to give me credit. So loans to relatives are also prioritized because they are interest-free.
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I also borrowed money from my sister when I was a college student. I ran out of budget because of my extravagance my sister did not let me pay the money I borrowed from her..
eLdavis
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There is notting wrong with borrowing money from your family members, at the same time always remember to pay them back.
Borrowing money from friends or relatives is fine, but if you commit to returning the money, then you should do it at that time only.
