I realize this may be slightly off-topic, so if it's too far off let me know.

Here's the scenario. I have a friend through one of the recreational activities that we both participate in with an adult son who owns an electrical contracting business in Wyoming.  At a very high level I checked the business out and they do look legit.  Their business has a contract with Sam's Club to do a fairly substantial amount of work and their business is looking for a loan up to $100k so they can complete the contract.  We currently have the cash available as we've been searching for our next deal, so it is available.

Their initial offer of return was for 5%, so I moved on as I didn't want to tie up that much capital for 12 months (the duration of the loan) for only 5%.  I have since explained to them that we do far better with property investing.  They have now offered a 10% return over 12 months for the $100k.  I'd like to get at least 12% - but I don't know if I'm being greedy or just realistic.

Knowing the character of the dad I don't sense a great deal of risk (and yes, anyone and any deal will present risk), and given the contract is with a large retail establishment I don't have any indication that it would be a bad deal.  My relationship with the father is a casual friendship. We don't hang out or anything like that, but he does participate in our community of interests.

Ultimately - has anyone done any deals like this, and if you did, how did you structure it?  

Any other thoughts are welcome and thanks for your input.