We advise clients to treat their friends and family the same as they would other investors.
Generally, investors want a return commensurate with the risk - as they perceive it. If this is a loan you sould consider
1. Some states have usury laws that limit the amount of interest you can pay.
2. If the loan is completely unsecured - the risk to the lender is higher and therefore should produce a higher interest rate.
3. Time is a risk factor - the longer you will take to pay back the loan, the greater the risk.
Investors who receive equity usually want to know how they will get their return.Some ways include an IPO/merger/sale/or stock repurchase -to name a few.
Depending upon the specifics of your situation and the desires of your investor/lender, you have several approaches to a equitable and mutually agreeable "deal".
Hope this helps
Business Growth Masters, LLC -
Capital Catalysts for Entrepreneurs
Home of the Scalable Business Plan
and QuikStart Capital Programs