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

When you’re helping out, the difference between a gift and a loan is stark. In one case your money is gone; in the other you have a good chance of getting it back, with interest. We do everything in our power to keep your borrower on track. Which means that you’ll 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. Now that’s something.

To protect your relationship

Friends and family lending is an age-old practice, but effective management of it is brand-spanking new. So welcome to the family. We’re here to document your agreement, then service the repayments for the course of the loan. This way, everything is crystal clear, legally binding, with us handling the dirty work. If your borrower misses a payment, we get on the phone so you don’t have to. Some people even say it has improved their relationship to have a successful loan repayment under their belt. Imagine that.