How to borrow money from friends the right way

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Word finances in green text, Shattered glass effect

Every person experiences moments when they fall a little short of money. Although this may be a rare case, you may need cash urgently at that moment. When left without other alternatives, borrowing money is the only solution available to you.

However, before borrowing, make sure you think of all the expenses that you will have to cover so that you won’t end up having to ask for money twice, as this will certainly spoil your reputation among your friends. Here is what you should do when approaching friends for money.

Be honest with your lender

Explain to your friend the reason why you need the money, and how long it will take you to pay them back. Give an estimated time when you will return their money, and make sure you do so.

Maintain your professionalism

Even when you borrow from a friend, make sure you are professional about it. Have a written contract that states the amount borrowed, interest to be paid and other details so that you can both reach a reasonable agreement and there is no scope for misunderstandings.

To ensure that your relationship doesn’t get strained, keep business away from your personal life. Keep to your promise, pay on time and ensure that you appreciate the favour that your friend has done for you by loaning you the money. Most importantly, never lower yourself in the eyes of your friend by asking for more money or less interest after the contract has already been signed.

Make borrowing your last option

Just because your friends have been kind to you, it doesn’t mean you should let yourself fall into financial difficulties on a frequent basis.