Money
What is the risk involved in this financing situation?
Borrowing from your relative: The risk in that is if they want there money back right away and if you miss a payment they would never let you borrow money from them again unless they still trust you.
I know from personal experience in borrowing money from a relative and it always came back negative so I told myself if I needed to ever borrow money again I'd go to a bank to help my needs and never family, cause they always let me down. I do have a real life rich relative but they don't know me and wouldn't fund anything cause of no trust.
Besides when I do graduate I do not intend on building my own business.
What is the risk involved in other financing situations (i.e., selling bonds, issuing stock)?
? Home equity loans
? Credit Unions
? Cash-value life insurance
? Customers
? Broker loans
? Suppliers
? Micro-loans
? Liquidate retirement funds.
? Borrow from a retirement plan.
? Consumer Finance Loans.
? Credit Cards.
Home equity loans.
Whether it is a home-equity line of credit, a second mortgage, or the refinancing of an original mortgage, you can usually get as much as 80 percent of the equity in a house. The loan is easy to qualify for, with rates comparable to and occasionally lower than small-business loans. Obviously, the disadvantage is you could lose a home if you are unable to repay the loan.
Credit unions.
Small business owners can get personal, unsecured loans from credit unions. If you have been a member of such an insti ...