Whether you’re borrowing from or lending to family and friends, it can be a sensitive financial transaction that poses danger to the relationships.
You’re right to avoid any miscommunication by documenting the loan — both parties agree to whats written on paper.
Let’s face it:
If you’re lending money, you want to protect yourself in the case of nonpayment.
So, how can you draw up a loan agreement in the event that you need it to take legal action?
You’ll have to include certain terms so that you can make your case.
- The importance of documentation
- Key terms to include
- Alternatives loan options
Read more at My Bank Tracker.