I want to invest in a company

My friend's clothing company is doing extremely well, and he was looking to expand into some other areas. I suggested to him that we could partner on a line, and I would also be interested in buying part of the company. He would prefer I become an investor, rather than an owner, but he's open to either. The total amount we were looking at was between $25,000 - $30,000. I have no experience getting a business loan, and really don't know where to start. I see lots of search results for getting a loan to buy a business, but not much for getting a loan to invest in a business. I have several questions about the process: Is the process the same whether I'm buying or investing?Is there any difference if I'm buying part of the business, instead of the whole thing? Any recommendations on companies I should try to work with? What kind of documentation will my friend need to provide if I can secure the loan? Thanks in advance for any advice!

DeeBee78 wrote:
My friend's clothing company is doing extremely well, and he was looking to expand into some other areas. I suggested to him that we could partner on a line, and I would also be interested in buying part of the company. He would prefer I become an investor, rather than an owner, but he's open to either. The total amount we were looking at was between $25,000 - $30,000. I have no experience getting a business loan, and really don't know where to start. I see lots of search results for getting a loan to buy a business, but not much for getting a loan to invest in a business. I have several questions about the process: Is the process the same whether I'm buying or investing?Is there any difference if I'm buying part of the business, instead of the whole thing? Any recommendations on companies I should try to work with? What kind of documentation will my friend need to provide if I can secure the loan? Thanks in advance for any advice! 1. Get an attorney involved and have proper investor or partnership/shareholder agreements in writing2. Don't do business with friends

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