In the real world, it’s not if you will be asked, but when you will be asked for some kind of personal loan from your great employee(s) or contractors.
Sure it would be easy to announce ‘NEVER Do That!”
but, most investors I know, have a huge heart and truly enjoy helping people.
Here is a proper way to “help your people” and cover your butt.
FYI, you should NOT do this like a Pay Day Cash Advance business. This should be, at most, allowed once every year or two. If you allow this to be “common practice,” you will get beat up and you will LOSE BIG TIME.
This is a very frustrating and pain in the butt activity, and it should be avoided as your first rule.