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tharesabeveragehere t1_jea2zjm wrote

Why would you not ask for a partnership agreement instead of a loan? This is where the term 'silent partner' was born.

If the business does well, you're the last one to get paid, in a "friend's money" loan arrangement. Similarly, if the business doesn't do well, you're the last one to get paid in this arrangement.

Banks provide loans.

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