How Lend Money to Friends

Sometimes we often experience a dilemma when a friend asked for help from us. Such assistance can include a variety of borrowed money. You as a friend would not want to let them feel sorrow, therefore you are trying to lend money to help a friend. But not all things can we do if they ask for assistance in the form where you lend money and itself also has an urgent requirement.

Therefore here are some tips on how lend money to friends:

Preview of your financial condition.

If you have money, does not mean you have to become a bank for others. Preview the possibility of your family expenses in the next few months. Maybe your child needs to go to school. Maybe your baby will be born. Maybe you’ll spend money on this, for that, and so forth. Do not get when you need money, money is still in the hands of others.

If necessary, you may also have budget some money to be lent. That is, although not every month someone comes to borrow money to you, but you can remain on guard in case a friend or relative you want to borrow money without your having to reject it because you already have the funds and you evaluate them deserved to be helped.

Carefully before giving.

Try carefully before you lend money to others. All you have thoroughly is “the person’s ability to repay its debts.” This is also done before the bank lends money to customers who want to borrow money. Maybe some of the following list of questions can be useful, when there are people who will borrow the money to you.

• Who is he? What does he do? Is he a relative or friend?

• For what purpose he borrowed the money? Business or the necessities of life?
• Is these urgent needs?
• What guarantees promised? Does he or she pledge for her property does not guarantee anything and only have a verbal promise alone?
• Did he have a history of borrowing money to you or someone else? What about “fate” of these debts? Are these debts can be redemption or not?
• When is he going to return the debt? Does that make sense or promise not when adjusted for the background?

From the list of questions above, you can judge for yourself whether the person you wish to lend money deserves to lend money or not.

Create Notes.

Do not hesitate to make a written agreement on paper sealed, when it lent money to reach hundred or thousands dollar. Or if under one thousand dollar, perhaps a receipt will suffice. What is important is that you keep records. What should be stated in such agreement or receipt is who borrow, how much will be borrowed, for what, and when it will be returned.

With a clean record, you’ll know when you have to collect, and how much money you’ve lent. And if there are problems in the future, these records can help you. Now you know how to lend money to friends.

Best Regards,

Handle Money