In the case of loans for investment, the family's…

In the case of loans for investment, the family's purpose is to take advantage of opportunities brought by individual family members. The loans afford the family opportunities to grow its financial wealth while enhancing the intellectual growth of individual members. These are frequently investments in businesses founded by individual family members. Such business loans follow these basic rules: 1) The borrower prepares a business plan and a loan application equivalent to that required by any commercial lender. 2) The borrower discusses the project's feasibility with the family bank's board and advisers. 3) When a loan is granted, the borrower provides proper business reports on the investment. 4) The borrower ultimately repays the loan.

— from The Flight Plan (Purpose/Wisdom/Risk)

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