Family Financing is one of the main sources of funds for early-stage or startup businesses. The reliance of family by entrepreneurs and owners is because of the high-risk nature of startups and the difficulties in attracting funds from mainstream financial institutions. However, family financing could be very risky to investors. Most lenders acknowledge that things can go very wrong with a startup as there is the risk of not getting back the money. Family financing carries further risks from close relationships which may suffer.