So this is a completely unsecured note and the borrower doesn’t have any discernible assets you can encumber in case of a default.

I understand that this is a small amount ($10k), but you have virtually no recourse (that I can tell).

I would be extremely leery of someone borrowing money for a business, but the business has no physical address, no assets, and is working off of a “virtual” business model.

I would demand something in terms of security. If he bails on you, you’ll bear the initial costs of suing him to recover your money and, even after you prevail in court, you’ll have to track him down and enforce the judgment yourself. I’ve done that before and it’s a bitch, believe me.