I agree with AR, dealing with family and friends is always f**ked when it comes to cash, unless you and your contacts can seperate business matters from personal (both parties understand it's not personal, just biz) - you can never mix the two and it is very hard for many people to do. OTOH if they are close then you know their limits - then you can cut them off when they try to chase. I have never been anything more than an end user when it comes to this topic, but I have seen some nasty stuff happen because of it.
just my .02