People You Shouldn't Approach for a Small Business Loan
A Home Business Article Contributed by Marsha Maung
People You Shouldn't Approach for a Small Business Loan
Asking for a loan for your small business is like standing at the edge of a cliff: To ask or not to ask. You're guessing and second guessing their response and trying to think of a good comeback or a reasonable answer to their questions. Every time you think of their reaction, your heart shrinks and shrivels up.
There are some people you should ask and there are those you should ask.
These are the People You Shouldn't Ask for a Loan From
- your best friend. Why is your best friend on this list, you're asking, right? Since he/she is your best friend, he/she should be begging to give you a small business loan, right? WRONG. Let's look at it this way, if you want to keep the friendship, don't take a loan from your best friend even if he/she begs you to take it! Unless you're 200% sure you're going to make money within the first year of your small business, DON'T. If you value your friendship, keep the small business loan away from your best friend.
Boss, I Need a Loan from You
Your current boss. If you're currently still employed and you're really close with your boss, don't get a loan from him/her. Imagine if you've asked him/her for a loan, he/she says 'yes' and then you suddenly change your mind and decide to stick to your employment. Imagine what your chummy boss will think and say?
Neighborly Assistance in Getting a Loan for Your Small Business? Thank You, but no Thank You!
Your neighbor. Your neighbor is on this list because you guys live next to each other. Getting a loan from each other will only strain the friendship or relationship if things go awry. And since you're planning to stick around at home to work on your small business, then the likelihood of seeing each other more increases. And if you fail to meet one single payment of the loan, he/she only need to pop her/his head over the fence and holler "Hey, where's this month's repayment, Fred? "
Asking Your Ex for a Small Business Loan Should be Axed
Your old boyfriend or girlfriend. Well, technically, you can try to get a personal loan from your ex boyfriend or girlfriend. It shouldn't matter. But if you're trying to keep a good image of yourself, then don't get a loan from your ex to START your small business. You look weak, unsure, uncertain.....Instead, you can get a loan from him/her if you've already started your small business. Get it?
Your Child Should be Left out of This Scenario Entirely.
Your child's schoolmate's parents. If at all possible, keep the children out of your small business. As soon as you get a loan from someone your son or daughter is associated with, then you're pulling them into the picture. It's better to keep the relationship/friendship as plain as possible.
Don't Ask a Relative with Big Mouth for a Loan to Kickstart Your Small Business
Your Aunt Fredda with a big mouth. You can ask anyone for a loan within the family. In fact, you should share your small business idea with anyone and everyone you can within the family. They're family, aren't they? But if the family member has a big problem with keeping a secret, then you're better off getting a small business loan from a shark.
