Make sure you want to go down this path before you start. If it is the right choice, make the best advance you can and keep it as businesslike as possible. Be as transparent as you can be about the business needs for the funds. Advise the “investor” how and when you will update them on the progress you expect to make once you have the funds. How much can you ask for from a friend or a member of your family?
That depends on their personal financial position. If they have a business, you might approach them with an arrangement that involves that business. The size or the strength of their business will dictate the amount that can be invested. Try to have a good idea about their company’s assets, debt structure, and value before you make an inquiry.
If the source has personal funds, you will want to have some understanding of their total assets. Try to ask for no more than 5% to 10% of their total assets. At that level, it will not be an insignificant a decision for them. But, in that range, it should not impact their lifestyle or future prospects. You do not want to financially impact a person in your family or a close friend beyond that limit.