DISADVANTAGES
Private transactions carry risk. There is no regulatory oversight or recourse and investors and businesses must conduct their own due diligence. Multiple investors. You’ll need to track and manage individual contracts with each investor. Ill will. If you fail to pay back your loans in a timely manner or in full, your reputation could take a beating in your local community. There’s no arm’s length between the investor and your business since you may move in the same circles in the community. LION EXAMPLE
Anthony has an opportunity to purchase his uncle's diesel repair business. It is the only diesel repair business in his small county with the nearest option over 50 miles away. He fills out an application to LION and receives several interested inquiries from LION investors. He receives $50,000 from 3 LION investors and is able to purchase his uncle's business. Two years later he has paid back the loan and has 2 additional employees in the business. Jefferson County, Washington retains an essential service business to meet the needs of the community.
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