Okay. You’re thinking of getting a business loan from a friend or family member, but you’re wondering if it’s the right thing to do. Borrowing to grow a business is a big deal. So here are a few reasons why we think a friends and family loan is a good idea.

You’ll probably get favorable terms.

Family, friends and associates are typically more interested in helping you out than making a buck. Getting even a slightly lower interest rate from them compared to the bank or a credit card could save you thousands of dollars over the course of your loan. Plus, your lender may agree to a deferment period or graduated payment schedule which allows you to build up some revenue before payments hit.

It may be your best—or only—option.

Let’s face it. Starting or growing a new venture is risky business and it usually takes customers, revenue and physical assets before a bank will lend a hand. A credit card is a convenient cash solution, but don’t let it get away from you or you’ll be sunk in late fees and high rates. In our experience patient capital—money from people you know loaned at favorable terms—is a good fit for many early stage entrepreneurs.

You can build your business credit history.

You need credit to build credit, and that’s just as true for business credit as it is for your consumer credit. Fortunately, your friends and family generally lend based on trust and good will, not a credit score. We can report your payment history to participating credit bureaus, so all your on-time payments count for something. You’ve got to be careful, though. Late or missed payments also get reported. Still, that’s all the more incentive to stay on track.