I’m looking to loan a good friend’s small business ~20k at low interest to print his art book. I’m well aware of the risk that I lose the whole amount, the book doesn’t sell, etc. Any tips on contract templates for setting up a loan like this? I’m in California, he is in Michigan. I don’t want it to be a personal loan, it should be to his company. I have an estate lawyer but not a contract lawyer, and am guessing for this amount it isn’t worth paying a lawyer to write a customized contract.
Is his ‘business’ just this book?
Regardless, he should look at doing a pre-sale and/or a print to order option.
Kickstarter or Indiegogo could be huge.
If you still want to fund him look at funding PO’s or earmark specific draws.
If you do this without a contract then treat it as a gift.
Remember the majority of books fail to make any money.
Just some food for thought.