Love Money

Love money is both an interesting term to Google (we know, because we did it), and a type of lending.

Love money is money loaned to someone starting a business by family and friends, and is basically "given" based on the relationship, rather than on any rational, arms-length commercial investment strategy. Sometimes the money is given in exchange for a piece of the new business (i.e., buying equity in it), but more love money is structured as a loan. Think: Uncle Bill, who finally has the somosas to leave working for the Post Office and start the restaurant he's always wanted to have, even though he knows nothing of running a restaurant, and isn't aware that 96% of all restaurants go bankrupt their first 3 years.

Love money. Lotta love needed.