Need cash for your kid’s braces, car repairs or a new business you’re starting up? With credit tightening, getting a traditional loan may be tough. If you’re finding cash hard to come by, you may consider approaching family members or friends for some money. But borrowing cash from family has some serious negatives– and some great positives– to consider before popping the question.

Negative: Relationship Strain

Consider the relationship you have with the person you’re thinking about asking for money. Have you and this family member always gotten along? If you’ve squabbled in the past, chances are when you throw money in the mix those fights could get worse. That means getting a loan from this person will put even more strain on your relationship.

Positive: Reasonable Terms

Unlike borrowing money from a bank, when you take a loan from a family member you can agree on the terms. The interest rate isn’t set in stone. Come to an agreement you both can handle and stick to it. You may benefit by not facing penalties and high interest rates like you would have if you’d gone through a traditional lender.

Negative: No Where to Fall Back

In a perfect world you’ll borrow the money and pay it back in the time that both sides have agreed upon. But what if something happens– you lose your job, get in a car wreck or some other emergency. Now you are unable to pay back that loan. Rather than just hurting a huge bank, you are hurting your family member. Have a back up plan for repaying your debt and make sure the person that is giving you the money is financially able to do so.

Positive: Unconditional Love

A bank doesn’t always understand your dreams and hopes like a family member does. If it’s your dream to start a business and a bank won’t give you the money, chances are your family understands your strengths and believes in you enough to help you get going. Not only are they giving you money, but they’re telling you that they believe in you.

The bottom line is, treat this relationship as a business relationship. Stick to the terms that both sides have agreed on and this transaction can go smoothly. But unlike taking a loan from a bank, there is a whole lot more at stake if something goes wrong. Relationships can be ruined over a loan. So don’t take advantage of your family member if you decide to borrow cash from a loved one.