If you are giving him a loan then you are expecting him to repay it at some point in the future.
if you are investing then you own a stake in his company & if the business fails then you lose that money but if the business is successful then you should have some kind of payoff or equity in that company.
nothing in writing then all you're doing is giving a gift.
Kiss your $25. goodbye. It's not an investment, it's a loan so write it up as such. Starting up a clothing line takes much more than a couple hundred dollars.
A promissory note may the legal paperwork you are looking for. Today he is asking for $25, if it is going to be successful tomorrow he'll be asking for $2,500.
Friends and money seldom mix well, as everyone else is saying in their answers... get it in writing. Terms and conditions that you both agree to. Keep your business dealings as professional as possible and keep your emotions out of it.
Most situations like this turn into a loss. What is your friend giving you in return for the $25? If it is a loan, get something in writing.
Okay so a friend of mine is starting a clothing line and he asked me and several other friends for an investment of $25 each. I just was wondering how should i go about this, $25 isn't really a lot of money so I don't wanna be greedy and ask for equity or anything like that but is it any documents i should print for myself before forking over $25 i could use?
