Before I was an entrepreneur I was a professional drummer. I played with headline acts on an international circuit, but a rare strain of pneumonia took me away from the stage. While I recovered I had a great idea that turned into a great success, and if I knew then that I’d be where I
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Using the bank of mum and dad for business funding
by Ben Lobel • • 0 Comments
The bank is often the first port for call small companies go to when seeking business funding, but could there be a solution closer to home.
Other start-ups may use crowdfunding or even the Enterprise Investment Scheme, but are small businesses missing out on the untapped wealth of the Bank of Mum and Dad.
Research by insurer Legal & General claims the Bank of Mum & Dad, where homebuyers borrow money from their parents to get on the property ladder, is now worth £5 billion.
The research finds parents will help finance 25 per cent of mortgage transactions this year at an average amount of £17,500.
That amount of cash could go a long way for a small business. Getting money from a family member is also likely to be a quicker process and hopefully you will be charged very little or nothing at all for the credit.
So what could you offer the Bank of Mum and Dad in return?
A place on the board
It is often said that with age comes wisdom. Your parents could offer their skills or experience to help your business grow.
You could reward them for their investment by giving them a place on the board or making them a director.
Equity for