These days many people have poor credit ratings. They must look to other loan sources apart from using the normal financial institutions. If you are approached to offer a loan to a person with poor credit, you should draft a loan contract. This type of contract, also called a promissory note, should be used even if you are lending money to your friends or family members. “Putting it in writing,” will help to avoid misunderstandings later.
Many people have never used a loan agreement before and therefore they would require a sample to help them draft their own agreement. The sample can be found on site such as www.One2OneLending.com. One2One’s AgreementBuilder will walk you through the process of creating your document, or their Forms MarketPlace will provide you with a “fill-in-the-blanks document.
A loan agreement is a legally binding document and it requires the inclusion of certain information. Sometimes you have to go to courts to recover your money and the lack of certain information in the agreement can hurt your efforts.
Information that must be included in the sample loan agreement includes the name and address of the lender and the name and address of the borrower. Additional information that is necessary includes the loan terms, the interest rate and the final date when the loan should be repaid. The sample loan document you use may also include other specifics such as collateral used to secure the loan, late fees, grace periods and steps that will be taken should the borrower default on payments. When downloading sample loan agreements from One2One Lending it is important to find the document that reflects your type of loan. Again, The AgreementBuilder and Forms MarketPlace will help you in this process.
Thursday, August 26, 2010
Tuesday, March 2, 2010
Recognize the runaround and put a stop to it as soon as possible.
The human condition is one of flux. One of the nice things about lending to a friend is that, hopefully, you can be a little more flexible than a big, faceless corporation. However, if your friend is taking advantage of your good nature, you will not be helping him or your friendship by letting your friend slide on their repayment.
John borrows $150 from you and promises to pay it back in a week. At the end of the week, he lets you know he will need another week because had other expenses. You agree to let him have another week. A week later, he tells you his pay was reduced and he can't pay yet. Meanwhile, John has plenty of money for food, dinner and entertainment. He isn't taking the debt seriously, and is just running you around, and the sooner you recognize it, the sooner you can deal with it.
If John is just a kind of strange, you may be best off to consider that money gone and just resume your friendship, deciding never to "loan" John any money in the future.
If you really must have that money back, you may need to face the fact that you and John are going to have a serious fight, or maybe aren't going to be friends any more once you have your money back. Think carefully about how you want to handle this situation.
John borrows $150 from you and promises to pay it back in a week. At the end of the week, he lets you know he will need another week because had other expenses. You agree to let him have another week. A week later, he tells you his pay was reduced and he can't pay yet. Meanwhile, John has plenty of money for food, dinner and entertainment. He isn't taking the debt seriously, and is just running you around, and the sooner you recognize it, the sooner you can deal with it.
If John is just a kind of strange, you may be best off to consider that money gone and just resume your friendship, deciding never to "loan" John any money in the future.
If you really must have that money back, you may need to face the fact that you and John are going to have a serious fight, or maybe aren't going to be friends any more once you have your money back. Think carefully about how you want to handle this situation.
Monday, March 1, 2010
Usury Rate
What Does Usury Rate Mean?
A rate of interest that is usually considerably above current market rates. Usury rates are often charged by unsecured lenders on loans. These rates can be illegal in some countries and situations because they often take advantage of unsuspecting individuals.
A rate of interest that is usually considerably above current market rates. Usury rates are often charged by unsecured lenders on loans. These rates can be illegal in some countries and situations because they often take advantage of unsuspecting individuals.
Tuesday, February 23, 2010
Decide if the person is trustworthy or not
If your borrower is somewhat flaky, then it’s a good idea to lend only a small amount of money or none at all. (There's nothing to say you cannot give some money to this friend, with no expectation of repayment. You can call it a loan if you like, but you can't really get mad if your friend doesn't pay you back).
If the person is trustworthy, then you should take into consideration how much money is requested. You might be willing to lend an amount less than asked for, and if this is the case, say so. Example: "I can't lend you $200, but how about $100?"
Under all circumstances, make sure that you get your loan understanding in writing. Use a loan contract or promissory note to avoid misunderstandings.
If the person is trustworthy, then you should take into consideration how much money is requested. You might be willing to lend an amount less than asked for, and if this is the case, say so. Example: "I can't lend you $200, but how about $100?"
Under all circumstances, make sure that you get your loan understanding in writing. Use a loan contract or promissory note to avoid misunderstandings.
Friday, February 19, 2010
Be Your Own Loan Agent
One2One Lending helps individuals formalize their lending agreements between the borrower and Lender.
One2One’s Agreement Builder™ guides you through creating a promissory note that is legally binding. Customers are guided through a process that helps them input loan terms (including interest rates and payment terms). Before purchasing the promissory note the customer can preview the repayment schedule which is built upon the chosen interest rate, loan term, and payment amount.
One2One also offers a Loan Forms marketplace. Customers can download a do-it-yourself promissory note that the customer can fill in the blank in a Word Document.
One2One’s Agreement Builder™ guides you through creating a promissory note that is legally binding. Customers are guided through a process that helps them input loan terms (including interest rates and payment terms). Before purchasing the promissory note the customer can preview the repayment schedule which is built upon the chosen interest rate, loan term, and payment amount.
One2One also offers a Loan Forms marketplace. Customers can download a do-it-yourself promissory note that the customer can fill in the blank in a Word Document.
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