Is it smart to mix business and pleasure?
How do you handle a situation where the one you love asks for a loan to fund a business?
Great question, but the answer may not be so simple. In a situation like this, it’s important for you to clearly differentiate your emotional feelings from the business concept and loan request. Unfortunately, this isn’t necessarily a simple task. It is natural to want to assist the one you love. However, just because you’re involved in a relationship with her doesn’t necessarily obligate you to make a loan to fund her business venture.
It would be in your best interest to evaluate a business loan to your girlfriend in the same way you would with another 3rd party. Be willing to sit down and ask the tough questions.
1. What is the concept of your business? It’s important that she have a solid concept that you actually believe will work. Otherwise, you are simply lending money as an act of good will.