The Right Way to Borrow Money From Someone You Know
A third round of Government stimulus payouts is in progress and and tax returns are right around the corner. For some, this is the opportunity to receive some much needed extra cash to pay for overdue rent, bills or unexpected expenses.
For others, though, the extra influx of cash affords them the opportunity to loan money to friends or family who may be in short-term need. If you are one of those who is temporarily short on cash now may be the right time to hit up someone you know that is about to receive a cash injection they might not immediately need.
Making the Ask
Most of us find it awkward to ask somebody we know for money. Having to admit that you are short of funds can be difficult but also placing that burden on someone else is hard too. And what if your request is rejected? That is reason enough for many to simply not ask in the first place.
A survey conducted by LendAmi found that 42% of people are not comfortable asking for a loan from a friend or family member so won’t at all and another 34% aren’t comfortable either but will if they really need to.
But there is a right way to ask that removes the awkwardness, increases your chances of getting the loan and helps ensure that the loan is paid back as agreed upon.
Most personal loans between people who know each other are done verbally which is the root cause of most lending conflicts later,
Successful loan requests, however, include honesty, responsibility and follow-through.
Eight Must-Do’s for Successfully Requesting and Transacting a Personal Loan from Friends or Family
Check out our infographic of the eight tips for requesting a personal loan from someone you know and getting it.
Setting Up Your Repayment Plan
Once you’ve agreed to terms and received you loan, making good on your payments can be challenging for some.
It’s not always a problem of having the money, but oftentimes, people simply forget. This is frustrating for the lender who really doesn’t want to have to harass you for payment.
Paying back your lender on time can be as easy as using a person-to-person lending platform, like LendAmi, that uses automatic bank transfers from borrower to lender on the agreed upon schedule.
This eliminates the forgetfulness aspect and assures the lender that their money is coming back to them on time. Reminders to borrower and alerts to the lender when payments are made keep the loan status transparent and both parties happy with the outcome.