I have an idea for a start-up company but I want to make sure that the way I go about funding the operation is legal. Rather than take out a loan or hit up family and friends for cash, I want to raise my funds by having companies pre-pay for advertising within my business. It will be stipulated that if the business does not come to fruition, the money will be refunded to the company buying the ad space. There will be plenty of advertising space available and from what my market research has shown so far, the business will have little or no competition in my area.

Any thoughts on this would be appreciated.

Thanks in advance.

Jack

It is legal. YOU should have an escrow company to hold the funds
Or you will be seeing a fraud charge quickly.

95% of the people who try what you are doing earn nothing for their
Pockets 3 mo in a row and advertisers are quickly disinfranchised.

Luck