To buy a capital investment and build inventory, a family member wrote a $3,000 personal check to my company. We verbally agreed on terms of 1 year at 10% interest with monthly payments.
My question is, should we sign an agreement stating the terms and conditions? What are the advantages/benefits to a written agreement? Will I need the agreement to write off the interest? What are the accounting and legal considerations?
If a bridge loan type agreement is recommended, where do I find a template?