For Borrowers

You may know exactly how you want to go about asking for money. For most folks though, this can be an intimidating and awkward conversation. But it doesn’t have to be.

We like to use the phrase "kitchen table pitch" to describe the way to we think works when you want to approach friends, family, and other potential lenders with a request for a loan. In contrast to the anonymous and often aggressive "elevator pitch", your pitch should be warm, informal, and in keeping with the relationship that you have already built with the person.

We’d say, “Just be yourself.” But that might come off as a little trite. So here are some ways to do exactly that

Be comfortable.

Pick a setting that suits the relationship you already have with the person. If you meet regularly, such as a parent or friend, you may be able to just bring up your request in conversation at one of those times. Like,say,at the kitchen table. Or it may be more appropriate to schedule an informal meeting, for example over lunch or a cup of coffee. And muffins! We just love muffins. Or email may be your shtick, not a face-to-face encounter. That’s fine. Do what feels right.

Be compelling.

Be passionate and informed about what you need. Show that you plan to treat the loan seriously by referring to, a promissory note, your plan for repayment and our role managing the agreement. Introduce the amount you need, why you think a private loan is your best alternative, and then propose an interest rate and the length of time it will take you to repay it. Explain why you are confident that you will be able to repay the loan.

Be serious.

There are two great concerns of private lenders. One, that the loan will jeopardize the relationship. Two, that the money might be lost. The best way to alleviate these concerns is to have Virgin Money in your back pocket to set up and service the loan. You may want to encourage your potential lender to visit our website and download a guide. It may take some folks a little while to warm up to the idea of a loan to a relative or friend. However many clients say the involvement Virgin Money as a neutral third party and a private loan expert is what convinced their lender to go ahead and make the loan.

Let the lender pick the final amount.

Instead of guessing how much your grandmother could lend you, let her nail down the exact dollar figure. Many lenders like to finalize the amount of the loan themselves. Instead of an amount, describe a range.

Be sensitive to family issues.

If the loan is between you and another family member, be sensitive that it might raise some emotional issues – such as jealousy - for other family members. The best approach is to be as open about the loan as appropriate, and make sure the same opportunity—possibly even at the same terms—is available to other family members.

Don't ask for it all from one person.

Unless you are fairly confident that a particular person wants to make you a loan, don't put all your eggs in one basket. Have a list of others who you're ready to ask.