By Winmark Business Solutions
“The richer your friends, the more they will cost you.” — Elisabeth Marbury.
After considering their personal resources, the next place most entrepreneurs look for additional financing is to “insiders” like family, friends or business associates. Borrowing from insiders is attractive because it’s private, often informal, usually unsecured and often includes favorable terms, and because legal default proceedings are seldom invoked. In addition, this kind of financing can often be incorporated into a family’s estate plan to assist in minimizing estate and income tax liabilities. continue »