Borrow Money From Friends But Pay Special Attention To The Promissory
Note

Borrow Money From Friends But Pay Special Attention To The Promissory Note



Borrow Money From Friends,​ But Pay Special Attention To the​ Promissory Note
Borrow money from friends and relatives only after careful consideration .​
Having a​ fantastic money-making idea but bad credit may point you in​ the​ direction of​ family and friends.
Financial risk will always be part and parcel of​ any loan .​
Borrowing money from family and friends highlights a​ double whammy though .​
Risk and emotional challenges.
A well rounded,​ thoroughly researched business plan can be very effective though .​
It can lower the​ risk involved and at​ the​ same time allay any fears of​ emotional challenges.
These issues should already have been settled by the​ time you discuss the​ promissory note .​
The promissory note will require a​ mutually well thought out plan before it​ is​ signed.
The Promissory Note
The promissory note is​ your promise to​ pay back the​ loan .​
The repayment of​ the​ loan is​ set out in​ the​ schedule outlined in​ the​ promissory note .​
All successful loans have as​ their foundation this type of​ note.
Without it​ not only would financial protection for the​ lender be in​ jeopardy,​ so would the​ relationship .​
The following are some of​ the​ protections that the​ promissory note provides:
1 .​
It sets out repayment dates.
2 .​
It also sets out repayment amounts.
3 .​
Outlines agreed upon grace periods.
4 .​
Indicates first repayment date and final repayment date.
5 .​
Sets out interest rates.
6 .​
Nullifies confusion,​ and protects the​ relationship.
When you borrow money,​ always observe and gauge your lender .​
An apprehensive yes may mean yes because of​ your relationship .​
But otherwise it​ would have been no .​
You could allay that apprehensive yes by offering to​ secure the​ loan.
You could put up your brand new Chrysler Jeep as​ security .​
This may be just the​ thing that turns the​ apprehensive yes into a​ full-fledged yes,​ with a​ smile .​
You have to​ gauge that sort of​ response .​
Be prepared.
Maybe your lenders concern is​ not the​ security but the​ low interest rate .​
Stay in​ the​ zone .​
You know the​ person .​
Again,​ be prepared .​
Make a​ response .​
It could be the​ seasonal nature of​ your product causing concern .​
Realistically adjust your payments for that time period.
Have you considered a​ third party? a​ third party would diffuse a​ whole lot of​ discomfort.
When the​ note has been signed,​ and the​ borrowed money received,​ you must know when the​ repayments are due .​
Should you encounter repayment challenges,​ immediately communicate with your lender .​
Do not miss payments and leave your lender in​ the​ dark.
Should the​ need for a​ readjustment to​ the​ repayment schedule be necessary,​ work it​ out with your lender .​
Keep communication lines open .​
Protect your relationship .​
You don’t want a​ ruined relationship be the​ main conversation at​ thanksgiving.




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