Taking out $20k loan for startup costs.
I want to offer ownership shares to one investor who’s lending me approx $10k but need advice on how to structure it please. I know nothing of what to include, what percentage and for how long (indefinitely?). Is there an average percentage to offer? In case it factors, their loan to me will be very low rate or interest free, tbd.
Any advice is helpful. Thx.
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I would not give any ownership shares for 10k
If I were giving you $10K on $20K, I’d want 50 percent share of business.
If short-term loan (i.e. 2 years), I’d charge you at least 10 percent interest on unpaid balance.
$20k in startup costs doesn’t mean the business is worth that. Could be more, could be less. Your math doesn’t math.
What would you suggest?