Family and Friends

• Is family and friends as a source of finance short or long term?

  Can be both
• What are the benefits?

  • can be an informal arrangement with no formal repayments (offers flexibility when starting their business)
  • no bank or application fees
• What are the drawbacks?

  • tension if money cant be repaid
  • can be attempts to interfere with the business (leading to disagreements)
  • amount of capital is limited