When I was about to start my general store business. Then I was thinking to borrow some money from my relative, but finally I decided to start it by my own, because borrowed money will cause long-term problems.
Absolutely, it causes problems in the relationship if you can't return the borrowed money on time. I have seen lots of friendships broken because of money alone. That's why I don't borrow or lend money to friends or relatives most of the time; it depends on the situation.When I was about to start my general store business. Then I was thinking to borrow some money from my relative, but finally I decided to start it by my own, because borrowed money will cause long-term problems.
But if I give money for business startup to a family member, I don't expect to be paid back. That's what family is for.This is the one reason sometimes family hesitate to give out their monies because they know they might not get it back.