Each person may find himself in a difficult financial situation, forcing him to look for the required amount from friends and acquaintances. And although in most cases the money is returned to the owner, the danger of losing it is always high. The ability to lend correctly will help minimize the risk of losing your money.
Instructions
Step 1
Assess the solvency of the person who is going to borrow from you. If the required amount is only a small part of his budget, the risk of saying goodbye to his money will not be too great. Otherwise, the debtor may simply be physically unable to repay the debt on time and in full, and then the refund may at least be delayed.
Step 2
Find out from mutual acquaintances how responsible the borrower is about his debts, or remember your own experience, if this is not his first appeal to you on a financial issue. The more often the borrower violated the agreed terms of debt repayment or completely forgot about them, the higher the risk that this time it will not be easy to return his hard-earned money. Pay special attention to the requests of those people whose credit history you could not find out. In this case, you are acting blindly, so you should not immediately borrow a large amount, it is better to first test a person with a smaller debt.
Step 3
Set a limit on the amount you are willing to borrow. Even someone with a flawless credit history can have unforeseen difficulties that prevent them from paying you. Therefore, when lending money, be internally ready to part with it forever. It is in this case that your debt limit will be beneficial - with it you will never lose more than you are willing to lose, without putting yourself in a difficult financial situation. The limit can be a specific amount or expressed as a percentage of the available cash on hand. In any case, you should not lend more than a third of your money.
Step 4
If the borrower needs a large amount, ask him to draw up an IOU by handwriting it, rather than printing it on a printer, so that a handwriting examination can be carried out if necessary. The receipt must indicate the amount of the debt, the date of repayment, and the full name and address of the borrower. His and your signatures are also required. After the notary has certified the receipt, you will have reliable protection from forgetful debtors.
