Whether you are just starting out or looking to expand, financing is an essential part of any small business. Proper financing can mean the difference between success and failure.
According to the Global Entrepreneurship Monitor, U.S. start-ups and growing businesses receive more than $129 billion from informal sources–this includes money that comes from family, friends, and other private parties.
To successfully borrow money from people you know, it is important that you overcome:
- Financial Risk: You must demonstrate to people who might be potential lenders that your business has a reasonable chance of success, and that their investment in it is a smart one. Lenders will want to see that you have the necessary skills, have thought about the risks involved and have a plan in place to minimize these risks while growing your business.
- Emotional Risk: You must convince people who might be potential lenders that investing in your business will not jeopardize their relationship with you. The information, worksheets, and examples contained in this document will help you to overcome this barrier, and bring you closer to getting the money you need.
When it comes to borrowing money from people you know, we realize that small business owners will be at different points in the process–some of you may be uncertain as to where or how to begin, while others may already have specific lenders in mind. This guide is organized so you can select the appropriate section(s) based on your individual situation and specific business needs.
Should you have any questions, please feel free to contact CircleLending at 1.800.805.2472 or visit us online at: www.circlelending.com/businessbuilder
Download guide to read more.