Business Starting Grants

Iwant to know advantages and disadvantages of using a wealthy relative to finance a small business?

I am searching this for a business class and don't have any rich relatives.

Public Comments

1. good stuff: pay back is more flexible. less interest you trust the person you are borrowing from If it is an angel investor you are golden bad stuff bad to work with family. They stick their nose in.
2. Especially during this recession a business may not profit. People are just not buying stuff they don't need. If you use a relative and the business goes under, chances are that relative will never speak to you again. A relative could give you a loan at a better interest rate or better terms than a financial institution would. /
3. About finance a small business can be read in http://boxer2009.synthasite.com/?q=small%20business
4. i would think it the other way -- seeing how the relative has much more to lose than the small bus owner.
5. Pros: Working out a good deal on the interest. Less pressure to pay on time (but that is considered a con on their part) Cons: They can try and control the business, or take over it. They will want to know EVERYTHING that their money is being used for, as well as have "say" in what goes and what doesn't go.