Borrowing money from friends or family is easy to do. This is a shortcut when you do not have the money or need additional capital for business. Many entrepreneurs who start a business by simply relying on a loan from friends or family for reasons not complicated processes such as borrowing at the bank, flexible repayment time, and not bound by interest.
But did you know that this could have a bad effect on kinship relationships? Therefore, it would be better if you borrow money from a trusted third party like Payday loans Las Vegas. Although not all bad risks will occur if you borrow money from friends or family, the risks and the bad consequences should be kept in mind as the following things!
Money changes one’s personality
Based on a study by Kansas State University in 2013, money-fighting is a major cause of the end of marriage. This means that the person you love so much can change when money becomes a problem.
Money also changes a person’s personality in business. Not once twice two friends sued each other when initially successful building together. The point is, people who are very close to you either family or friends can be an enemy because of money problems.
Must submit as long as the debt is not paid off
In America, known terms when someone borrows money from someone else, then the borrower becomes a slave until the debt is repaid. Initially, the lender claims to be not troubling the loan and just wants to help the borrower become successful.
But just wait when the borrower finally on vacation abroad, can buy a house or a car, and buy expensive things. The lender will look at the borrower with envy or dislike.
You may find it difficult to return the money
Most businesses take years to get behind the capital. If you borrow, for this reason, think about this risk. Instead of frightening, almost half of entrepreneurs in America should close their businesses within five years of starting.
When not having a dime to return the debt to a friend or family, the relationship becomes worse. Especially if the economy of friends or family borrowed are equally difficult.