Most of the time people take loans from a bank or a credit union when they need liquid capital fast, but this comes at the expense of sending your funds away to a different organization that an entirely different family owns, or multiple families. To help keep the funds within your family, suck in your pride and be trustworthy enough to request or issue money from or to your family.
Taking or issuing loans, also known as Promissory Notes, from or to your family can be quite a hassle. Understand, I sympathize with the problem of collections calling you after you default on a loan from a bank, imagine if the collections agent was your mother. That's a huge drawback because it can have an effect on personal relationships and familial relations. That is the biggest drawback.
If you're trustworthy, transparent, and honest with your family, things can go smooth sailing as you're being given lower interest rates compared to those given at banks and credit unions. Building up trust with your family through loans will also mean that you're helping to build up your family's wealth. If things go according to plan, your family can act as your own personal bank where you can get liquid capital fast without sending out your money to institutions that genuinely do not care about you.
Work with the family, not against them. Taking loans from third-party institutions shouldn't ALWAYS be the top priority when needing capital fast.
Yes! We've been discouraged from borrowing from friends or family, but in truth, it is a great way to build family wealth. Hold an interest mortgage for your child, and leave your interest in the property to that child. Your money will then make 5 or 6 percent until you die (your child pays you instead of a bank, and you will not foreclose on them if they default), they deduct their payments to you from their taxes, and no one pays capital gains tax on any of it. There are so many ways to make money that we are not aware of. Being the bank for your family is a great one!