---I COULD be wrong; rarely am on this topic--
but an investment is NOT a loan. IT can be converted into
one and visa versa.
an investment is 100% risk cash. A loan is not.
---TRY posting again--leaving this one alone......
and use investments without the loan language.
and loans without the investment language.
It is fine but you have to address the unpaid balance after the 48 months is left. The loan will not have been fully amortized. Use bankrate.com (free to visit) or any other amortization site to calculate it.
If you seriously want to attract investors in a real business, you need to secure this loan to something. It could even be your personal car. But if this is for a business class, it is ok as written.
I wrote these terms up to put in my business plan that I am drafting. Are there any changes needed for this to be more "proper" from a bankers prospective?
The investor is providing a $20,000 unsecured personal loan towards the startup costs of the business. The investor will receive a 10% fixed interest rate over 48 months. Monthly interest payments to the investor will begin during the second month the business is operational. Principal repayment will begin 12 months after the business is operational, in monthly increments for the remaining 36 months.
