Make A Kitchen Table Pitch

Here at Virgin Money we use the phrase "kitchen table pitch" to describe the way to approach friends, family, and other potential lenders with a request for a loan. In contrast to the anonymous and often aggressive approach embodied in the "elevator pitch", your pitch should be warm, informal, and in keeping with the relationship that you have already built with the person. Here are three ways to do that successfully:

• Make it comfortable. Pick a time and a location that suit the relationship you already have with the person. If you see the person regularly, such as a parent or friend, you may be able to just bring up your request in conversation at one of those times. For some people it may be more appropriate to schedule an informal meeting, for example over lunch or a cup of coffee.

• Make it compelling. This is the time to communicate what it is you need. Show that you plan to treat the loan seriously by talking about Virgin Money, the role of the promissory note, and your plan for repayment. Introduce the amount you need and why you think a private loan is your best alternative, 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.

• Make it safe. The two greatest concerns of private lenders are: 1) that the loan will jeopardize the relationship, and 2) that the money might be lost. The best way to alleviate these concerns is to have Virgin Money 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.