So you’re considering loaning money to a friend or family member. You must be a nice person. Still, it’s hard to part with hard-earned cash. Why should you do it? And why should you use us to do it?

To lend a helping hand.

Helping runs in the family. Especially when it comes to major life milestones like school, a car, a new business and a home, people like to help friends and family realize a dream. Sometimes it’s nice just to gift the money, and plenty of people help out that way. But sometimes the need is greater, and a thoughtfully structured loan is the better fit. Plus, you can be extra supportive by charging low or no interest or forgiving payments if your borrower hits a cash crunch.

To generate income

Having a clearly laid out plan prior to disbursing money will help keep your borrower on track. That means you should get a steady stream of payments according to the terms in the promissory note. If your borrower's only other financing option is a high interest credit card, there's a good chance you can agree on an interest rate that's a deal for your borrower, and is more than you could earn on a CD or similar short-term investment. So you get to both help and make money.

To protect your relationship

Friend and family lending is an age-old practice, but effective management of it is brand-spanking new. We’re here to document your agreement. This way, everything is crystal clear and legally binding. There is no question about when the payments are due or what the payment amount is. Some people can even say it has improved their relationship to have a clearly documented loan as a basis for the financial transaction. Imagine that, a document that can make life easier!