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What are the drawbacks of a zero interest loan?

Should I take a zero interest loan in exchange for 5% of before tax profits to the lender, for as long as the business operates? What are the drawbacks of this agreement? I will be opening a spa soon and received this offer from a co-worker.

Although I can always use the cash, I have the feeling that this deal will be expensive in the long run. My guess is that 5% before taxes will be equivalent to almost 8.5% of after-tax profit.

Taxes, Small Business Financing
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December 2017

I have no idea how much money you will make in your business or how much money they are talking about giving you.  If you are giving up a percentage of your profits, you are basically selling equity, not getting a loan.  You just need to look at the value the money you are receiving, how much more money you and your business can earn as a result, and compare that to the future value of the 5% of profits.

November 2017
December 2017
January 2018