Should I Borrow From My Family To Raise Business Finance?

Friends or family may give you money to set up in return for a share of the business. This is Equity finance without the formal pitch and it feels lovely and cosy at the start with no need for Business Plans or Shareholder Agreements. However make sure your friends and family love you very much as it puts a real strain on things if you lose their money. Conversely it often also causes resentment if they end up taking a big share of the sale of the business without having contributed to the hard work.

Other Options

Debt Finance - arranged by First Funding

Small Firms Loan Guarantee Scheme

Bank or Secured Loan

Credit Card

Overdraft

Re-mortgaging your home

“Love Money”

Savings

Venture Capital Equity finance

Back to options page