Personal Loans From Private Lenders
On one level, private lender personal loans between friends or family members represent the best possible scenario. Both parties know one another, and the lender is motivated to help the borrower. There are seldom any credit checks, and repayment terms are flexible. Nonetheless, there are hazards involved, especially when the loan is for a large amount of money. In such cases, borrowers would be wise to reconsider private lender personal loans – and consider LoanNow.
Friendship Bonds and Family Ties
Many private lender personal loans are strictly informal. There are no contracts and no formal negotiation. One friend provides another wit h cash or a check with the understanding that the borrower will repay the funds when he or she is able. If the loan is small and repaid quickly, such arrangements work well. However, other loans are for larger amounts of money informal arrangements can quickly backfire, sometimes straining once-close relationships beyond the breaking point.
Put It in Writing
While it may seem awkward, private lender personal loans for large amounts of money should be negotiated, and both parities should receive a copy of the agreement. There’s no need to draft a lengthy document on parchment stuffed with legalese. A promissory note signed by the borrower or a document outlining the amount of the loan and the terms for repayment, signed by both parties will suffice. Payments made should be noted by a receipt, an email message or some form of confirmation.
Asking for an agreement isn’t a sign of mistrust. Rather, a signed promissory note or agreement protects both borrower and lender in case of an unforeseen circumstance. With an agreement in hand, there is a reduced chance of a misunderstanding about what is owed and what has been paid.
LoanNow: a Better Alternative
While private lender personal loans are fine for many purposes, they aren’t always the best answer. In some cases, friends and family members are not financially able to provide the amount of money a borrower needs. In such cases, LoanNow may be the best option. We look beyond your FICO score to consider your entire financial profile, so we may be able to approve you even if your credit isn’t perfect. As a direct lender, we don’t share your information with third parties. And we never demand collateral or impose hidden fees. In fact, borrowers who maintain good repayment records are eligible for reduced interest rates on future LoanNow loans. Why not check out the LoanNow alternative for yourself!