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Loans from loved ones are easier to get, less stressful, and easier to pay back.
Generally, friends and family won't loan money out if they don't have it to loan....in other words, if they can't afford to lose it, they aren't likely to loan it in the first place.
One of the major drawbacks of borrowing from friends or family, is that they may want to be a little bit TOO involved in how you run your business. Only accept money from people who aren't uptight about money, people whom you know won't try to interfere in the running of your business.
Make sure you make this type of transaction as "Business-Like" as possible. Draw up a contract with the lender, set payment dates and insist on paying interest. Then follow through with it. Make sure you pay back every dime, plus interest, as agreed, because the other drawback of this type of loan, is that if the lender feels like you cheated them in any way, you may have lost a friend, or started a family war! And in the end, the money isn't worth it.
