Jennifer Adams considers important implications of lending money to a company in exchange for shares.
Setting up in business can be expensive, and some entrepreneurs may not have the wherewithal to fund the full cost.
Loans and grants are available from various sources, including banks and the government, but only up to a set amount, which may not be enough to cover start-up costs, day-to-day running of the business for the first few months and personal living costs before the business brings in money. For example, government start up loans allow borrowing between £500 and £25,000 at a fixed
