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5 Steps To Business Financing With Friends Or Family

Managing Your Bottom Line

By
This story appears in the February 1996 issue of Business Start-Ups magazine.

If the banks won't budge and you've exhausted your savings, your last resort for financing may be your family

Family financing can be a bonus for everyone involved. If your parents, for example, loan you $40,000 to start a business, and you pay them back, with interest, on a regular repayment schedule, you get start-up capital and a deduction for the interest, while the folks earn some interest income.

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