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Shaw Capital Guide to Business Loans from Family & Friends
Shaw Capital Guide to Business Loans from Family & Friends
Shaw Capital Management and Financing – The key to successful financing is structuring loans right. Avoid Debt Management Scams.
Baltimore,
Maryland,
United States of America
(prbd.net)
01/03/2011
Shaw Capital Management and Financing – The key to successful financing is structuring loans right. Avoid Debt Management Scams.
An estimated half of all small businesses depend on private investments from family and friends for startup or expansion. Shipping giant UPS was launched when 19-year-old entrepreneur Jim Casey borrowed $100 from a friend to start the company nearly 100 years ago in Seattle. And when teenager Fred DeLuca opens a sandwich shop in 1965 with a $1,000 check from a family friend, Subway (now 25,000 restaurants) was born. Friends and family is the single most important outside funding source for small business in America. But there are risks, and "F&F" money must be approached carefully.
Shaw Capital Guide to Business Loans from Family & Friends - Action Steps. The best contacts and resources to help you get it done.
Put a financing facilitator to work. Small business loans from friends and family often go awry because they haven't been properly structured and administered. Sign up a service that will prepare documents, create repayment schedules, bill, collect payments and provide year-end tax statements.
I recommend: Virgin Money (formerly CircleLending) has been a pioneer in private loan administration. The firm helps manage transactions such as small business loans between private parties — especially family and friends.
Shaw Capital Management and Financing – The key to successful financing is structuring loans right. Avoid Debt Management Scams - Offer equity in your business. If your business is a corporation or LLC, your funding source can become an equity investor, buying shares in your business.
I recommend: At Intuit's MyCorporation.com web site, you can incorporate a business or form an LLC online for as little as $149, plus state filing fees.
Put your plan in writing. Even with family and friends, you need to put a business plan and request for funding in writing. Make it as detailed, professional and realistic as you can. Aim for full disclosure of all potential risks.
I recommend: A terrific place to find help writing your plan is Bplans.com.
Arm yourself with finance facts. The better you understand the intricacies of financing, the more likely you are to succeed.
I recommend: "Financing Your Small Business: How to Borrow Money from People Your Know," is a helpful booklet produced jointly by SCORE and CircleLending.
Shaw Capital Management and Financing Guide to Business Loans from Family & Friends - Tips & Tactics. Helpful advice for making the most of this Guide. Plan your approach in advance. Think about your ideal loan and how it would work, and have those details at hand. Be yourself when you approach people for money. Don't try to suddenly come off like a big corporate executive. That's likely to be a turnoff. Don't borrow more than your friend or relative can afford to lose. Let them name the final amount. You don't have to get it all from one person. Agree on terms and formalize the agreement in writing. If it's a loan, this should specify an interest rate, repayment schedule and whether the loan is secured or not.
About
Shaw Capital Management and Financing provides export trade financing to clients in every major world market and can convert accounts receivable finance transactions in 17 currencies.
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