CARTOONS BY CHRIS BRITT
StartUp_Wisdom_online2
StartUp_Wisdom_online2
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
DISADVANTAGES<br />
Private transactions carry risk. There is no regulatory oversight or recourse and investors<br />
and businesses must conduct their own due diligence.<br />
Multiple investors. You’ll need to track and manage individual contracts with each<br />
investor.<br />
Ill will. If you fail to pay back your loans in a timely manner or in full, your reputation<br />
could take a beating in your local community. There’s no arm’s length between the<br />
investor and your business since you may move in the same circles in the community.<br />
LION EXAMPLE<br />
Anthony has an opportunity to purchase his uncle's diesel repair business. It is the<br />
only diesel repair business in his small county with the nearest option over 50 miles away.<br />
He fills out an application to LION and receives several interested inquiries from LION<br />
investors. He receives $50,000 from 3 LION investors and is able to purchase his uncle's<br />
business. Two years later he has paid back the loan and has 2 additional employees in the<br />
business. Jefferson County, Washington retains an essential service business to meet the<br />
needs of the community.<br />
37