I wanted to get people`s take on peer-to-peer lending to help finance a startup company. A good idea? A group of six of us have started a high tech manufacturing company. One of the partners, a current business owner, had made it clear that he would like to see everyone in the group invest money as a sign of commitment in the startup. He`s willing to invest up to $30,000 of his own money. Another partner is willing to invest $30,000 as well. He`s not expecting everyone to match his $30,000 but he`d like to see a $5,000-$10,000 investment from the rest of us. I don`t have $5,000-$10,000 in cash. I was considering three options:
1) Borrow from friends and family
2) Use a credit card
3) Peer-to-peer lending
I am hesitant to borrow from friends and family. That can lead to personal problems. Credit cards can have really high interest rates. That leaves me with peer-to-peer lending. but I wanted to get the opinions of others.
What say you, Startup Nation?