Finance Would You Make Your Relative A Financier Of Your Business?

[Good-Guy]

Finance is one of the most important aspects of any business. This is also one of the biggest reasons why many people are mostly concerned about managing or arranging finance and they usually find it hard to do so. So, may people turn to their relatives in order to seek financial help in the form of loans. However, not all the people grant loans rather they invest in the business instead of giving loans to the person if he or she is really capable to conduct the business. The financier is the sleeping partner whereas the person who receives the finance is the working partner in this case. So, do you think it is wise to get your relative into this and make him the financier of your business? Personally, I would not do so.

 

[Mika]

If needed, I would certainly get money from my relatives to fund my business. I do not see any problem with this. However, in order to avoid future conflicts, you will need to sign a contract with your financial relative where you both agree to the clauses of investment and the operation of the business.

 

[Good luck]

Finance is very important in a business , the way you spend your fund determine the income you are going to make in such business.Allowing your relatives to manage your finance may not be a good idea because it will affect the business because if your family mismanaged your fund you will not take a drastic measure him or her.

 

[Good-Guy]

If needed, I would certainly get money from my relatives to fund my business. I do not see any problem with this. However, in order to avoid future conflicts, you will need to sign a contract with your financial relative where you both agree to the clauses of investment and the operation of the business.

When it comes to relatives, matters related to business become sensitive and this is why it is much better to avoid such conflicts to begin with and I believe this is one of the main reasons why it is much better to avoid making your relative as your financier. Personally, I would not want anyone to be my financier be it my relative or anyone else. I would like myself to become my own financier.

 

[Richking]

I like that business every day

 

[btaliat]

I would still prefer making my relatives my source of finance instead of borrowing from loans. Relatives can still understand you better if you are unable to pay on time. They can still give you enough time and even be supportive. However, the opportunity must not be abused to avoid family feud.

 

[Sicami]

Idea -> Business plan -> Lobbying -> Investors. Money is important but not clutch!

 

[Kennysplash]

If it's not your immediate family, then I would not consider that a good idea. Sourcing for loans from outsiders most times is better. Families tend to have a feeling if entitlement, that whatever you make at the end of the day was only possible because of them. So they expect to control you and your business, since they helped you reach where you are. I am talking based on what is really happening and on personal experience. Your relatives can give you funds, yes. But the outcome of that might not be favourable.

 

[Mataracy]

Finance is one of the best part which one need to be care full how it will be manage.
Before could put a family as a financial manager there must be utmost good faith about the family friend.
If care is not taken there may be flops or lapses in which one may not be correct the person as one ought because of what people may be saying .
To me I Will say that its not all that good to take family as a financial manager because secret may not be well kept. Where as the secret if the business must not be leak out to any body outside because it can ruin the business or tarnish the image of the company or the owner of the business .

 

[btaliat]

If I want to be a sole financial supporter of my family member, I must put everything into legal agreement to avoid future complications.

 

[Mandy96]

Well to me, I think I support the fact to make one’s relative as a financier like the poster put it. I mean your blood is surely your real family, fine I know some people are not worthy to be called a relative but nevertheless they still tend to be part of the family. The reason why I see this as a good idea is because no matter the money you make from your business, it all stays within the blood related circle, imagine someone that puts his younger brother as a financial officer at his company, you should know that the energy to work will be very great.