Financial support from people you know or who support you personally. For example, three friends/family members loan you £10,000 between them to get your organisation up and running.
When might I use it?
When you’re getting started – at a point where your organisation has no track record or access to other forms of finance.
Where can I get it from?
Normally from people who you know well, or friends of friends who have an interest in what you’re doing and have some spare cash.
Pros
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These investors support you and what you’re doing so are likely to be patient about when they get their money back
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Investments are usually trust based so should not be time-consuming and complicated to arrange
Cons
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If the organisation fails, your friends and family members lose their money
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Problems for your organisation could have a negative effect on your personal relationships