I'm looking for a bunch of questions to ask a person who I am about to lend money to. Not to overwealm them, but to make sure i can trust them.
Any ideas?
2007-11-07 10:45:35 · 8 answers · asked by stepanstas 2 in Business & Finance ➔ Personal Finance
Your most important question is their ability to pay. What is their job, how long have they been there? Do they have other debts, such as a mortgage and car payments?
Whatever you do, put it all in writing. How much they are borrowing, interest rate and when it will be paid back. Then both parties should sign the document. You will need this in case they don't pay you back and you need to take them to court.
2007-11-07 10:52:42 · answer #1 · answered by Angie 6 · 0⤊ 0⤋
When and how can you pay me back?
Do you have a guarantor?
Can you sign a paper stating how much you owe me and how and when you will repay me, and the interest running in case of missing payment(s)?
Beware that when you lend to a friend you may lose both the friend and the money.
2007-11-07 18:50:48 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Does your borrower have collateral? In the event that they cannot pay you back, you want to make sure that your investment is secure. In real estate, my private lenders make sure that the note is secured by the property. They lend on 70% of it's value, so in the event they have to foreclose on the note, they can always recover their investment.
Also, does your lendee have some "skin (of his own) in the game"?
To your success,
Tim
2007-11-07 19:06:26 · answer #3 · answered by Anonymous · 0⤊ 0⤋
First poster has it right.
Another thing to think about, are they friends or family? If friends they wont be when pay back comes around, if family do not expect to be paid back (friends either for that matter).
Money is the root of all evil.
2007-11-07 18:50:53 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Neveer lend money that you aren't willing and able to just give the person if they can't or don't pay you back.
2007-11-07 20:25:47 · answer #5 · answered by Judy 7 · 0⤊ 0⤋
Neither a borrower nor a lender be;
For loan oft loses both itself and friend...
William Shakespeare
2007-11-07 21:21:09 · answer #6 · answered by The Professor 5 · 0⤊ 0⤋
use a promissory note. get collateral if possible. if a bank or credit card won't lend to them, neither should you.
2007-11-07 18:47:46 · answer #7 · answered by heart_and_troll 5 · 0⤊ 0⤋
not enough information.. quantity of money? relative, wha?
2007-11-07 18:55:23 · answer #8 · answered by Christian V 1 · 0⤊ 0⤋