Loaning Money to Start-Ups

Businesses are always a risk. For some, the only way to get funding is to ask for money from those that they know -- most banks won't take a risk on start-up ventures. If somebody asks you to loan them money, make sure you know how things work. A recent Kiplinger's podcast answers the question:

What should you do if somebody you know hits you up for some cash?

By listening to this story, you'll learn the basics on loaning money to a friend for business purposes. You'll know what your motiviations should be, and how you should structure the deal. With more knowledge, you can keep your friends and family close. Loaning money to friends and family can really be tricky. The jist of the story is that you should only make the loan out of kindness as opposed to greed.

Further reading:

• Kiplinger's Podcast
• Finding Start-Up Business Loans