Category Archives: Blog

Relationship Lending 101

Relationship Lending can be a sticky mess. So here’s a guide for all the people that have been taken advantage of for their generosity in lending money.

This blog pretty much came about because of a situation I was put in because a friend avoided paying me back the money she owed me. She would use every excuse imaginable and would simply not reply to any message if it concerned the loan.

So I put it to you, have you lent your friend some money and in the end it reached that point where you’ve had to chase it up so much you’ve just given up?

My issue with Relationship Lending

Let’s think about it rationally. The first point I’d like to make is that it’s not just you, things like this happen to a lot of people and it’s just life, or more like one rotten individual that decides to take advantage of you. Also, relationship lending is a constantly increasing way of loaning and borrowing money, and with no formal documentation, situations like mine constantly occur. 

I know people will say it’s a good learning experience, but heck, it shouldn’t be seen that way. As a child, I was brought up to repay or give back what I borrowed. It’s just common decency. Where I’m from it’s definitely not a thing to avoid paying someone back. It’s not just rude, but that person is being selfish and potentially risking a relationship.

Let’s face it, it is an experience we learn from. As we hear and learn about experiences like this we learn to be a bit more careful with our money and whom we lend it to. These next few steps are what I’ve come up with that help me loan between family and friends in the safest and most manageable way.

Look at their history

If it’s a friend you’re lending to, have a solid think about past events. Specifically think about situations where splitting bills, buying rounds and offering to pay have arisen. For example, if you’ve offered to pay for something of theirs do they offer to split it or even repay you, or do they just let you pay it? If you buy rounds do they actually buy ‘the next round’? Do they offer to pay for you when you go places?

Another key aspect of this is to consider how close you and this person are. Are they someone you enjoy spending time with and constantly catch up with? Maybe they’re the kind of person that doesn’t stay in touch and waits for you to contact them. Maybe they’re a family member like a parent or sibling. Or maybe they’re a distant European cousin saying they’ve got cancer and need help…..seems legit right!

Look who’s asking!

Are they asking or are you offering? Always consider who’s initiating the loan. I’m not saying don’t lend to people that are asking, however, suss out the importance of the loan to them and the reasoning for the initiation.

Let’s put it this way, if someone’s whining to you about needing money and they’re obviously hinting at you loaning the money to them, then maybe it’s an ‘enter at your own risk’ situation.

Some people may approach you in a reasonable manner. For example, sit you down, ask for a loan and offer repayment details straight off. They’ve obviously thought about it, really need the loan and want to prove to you they can be trusted.

If someone you’re friends with but don’t see often asks for a loan, to me, I can see red lights flashing. Maybe they’re a genuine person and simply trust you over anyone else, but be sure if you do progress you have other methods (listed below) in place to make sure it’s repaid.

I’m INTEREST-ed

Let’s put it this way if they honestly need the money and have every intention of repaying the money then they won’t mind if you charge an interest rate or even ask for some cash on top of the loan for agreeing.

Personally, I don’t use interest as a way to make money off someone in need, however, it’s more of a security mechanism for me. By them agreeing to the interest/interest rate they’re saying, I need the money and this interest is an assurance for the lender.

Document it!

Our society is constantly becoming more tech savvy, so it doesn’t surprise me that there’s an exponential growth in fintech (financial technology). One in particular, that I would definitely recommend is credi.com!

When I started working at Credi and understood the platform and thinking behind it, I realised that I’d never make this mistake again. Signing up for a Credi account is simple and it’s FREE! It’s a great little tool that helps to make relationship lending formal, safe and manageable. The platform even has adaptive and unique features such as E-signing, repayment schedules, email & SMS notifications, interest rates, negotiation and much more.

 

With these key steps, I find relationship lending a much easier and less stressful process. I’m constantly lending to my siblings and now that I follow my own little guide I no longer have to chase people up or have arguments surrounding unpaid loans.

I hope these steps on relationship lending help you lend and borrow from friends and family.

 

 

Credi Pty Ltd (Credi) is not a bank or a financial lender. Credi only provides a platform that allows friends, family and third parties to originate, negotiate and conclude loan agreements amongst themselves. Credi does not provide advice, monitor or assess, agree, approve or decline any loan requests nor does the platform perform any funds transfer services.  The use of the Credi platform is governed by Credi’s Terms of Use

NOTE: The views and opinions expressed here are mine and do not necessarily represent or reflect the views of Credi Pty Ltd.

Becoming your own personal loan specialist

What if I told you there was a way to get a little more money out of your parents. That there’s a perfect way to show them that you’re responsible, reliable and financially savvy – and, well, become your own personal loan specialist!

Just like every person these days likes to retort ‘google it’, I’ll just say to you #CrediMe!

What’s Credi? Well, have no fear, cos I’m here to give you the insider on the little financial technology (fintech) company I call home.

Credi.com, a vital piece of fintech, is one of the fastest growing lending platforms in Australia. We’re an online platform that helps all you millennials and the ‘Bank of mum and dad’ (BOMAD), set up a loan online, document the details, create a repayment schedule, and formalise everything with an agreement and E-signing component. Our fintech platform has already helped hundreds of Australian businesses, friends and families formalise their loans and then manage them – protecting their relationships, avoiding disagreements.

So why not be your own personal loan specialist and set up a loan today. Just add your details, suss out your own repayment details and negotiate the loan like a boss.

Because hey, if Tim Gurner can get his little old grandpa to give him a $34,000 ‘kickstarter’ and become a millionaire, surely we can get a smidge from our parents.

So let’s prove the ‘Bank of Mum and Dad’ wrong and show them we got our s**t together. Well, together enough to write in a few details into a platform and in turn get more money to pursue the beautiful things in life….such as that Contiki trip to Europe that’s been on your mind. They might even be so impressed by you making it a formal agreement that they may forgive the loan.

 

 

 

Credi Pty Ltd (Credi) is not a bank or a financial lender. Credi only provides a platform that allows friends, family and third parties to originate, negotiate and conclude loan agreements amongst themselves. Credi does not provide advice, monitor or assess, agree, approve or decline any loan requests nor does the platform perform any funds transfer services.  The use of the Credi platform is governed by Credi’s Terms of Use

NOTE: The views and opinions expressed here are mine and do not necessarily represent or reflect the views of Credi Pty Ltd.

Am I doing it right? The struggles of ‘Adulting’

You may have heard people use the term Adulting before. When my generation usually uses it we refer to growing up, becoming responsible and taking our rightful place within society. However, there is definitely a whole more to this term and I’m typing this blog as we speak to explain to the struggle of ‘adulting’.

Adulting is the term we use when we start to get our s**t together. Once the studying is done, this is where the BIG step to becoming an adult begins. It’s the times where we discover there’s a new expense or payment we had no idea of exists and that our parents are no longer paying for. It’s for the times when we have to get ourselves out of our own sticky messes, work proper hours and pay for our own necessities to life – rent and bills being a couple. Adulting is the limbo state where we go from being a young adult to a somewhat-contributor-to-society-that-pays-minimal-tax.

But let’s face it, sometimes life gets tough and taking the step to being an adult is more of a leap, off a rock, that’s on a cliff, thousands of feet high. So there shouldn’t ever be any shame if we have to resort to going to the ‘Bank of Mum and Dad’. Right? Well if you have no intention of paying them back, or even plan to pay it back as slowly as possible, then sure it’s probably not going to be a fun experience. BUT, if you show them you can manage your finances, make reasonable repayments periodically and negotiate terms, then why the heck not!

That’s where this sweet new fintech (which I’ve recently discovered means financial technology) called Credi comes in. Think of an online platform that allows you to formalise loans and then manage them. An awesome website where you can create, negotiate and accept loan agreements with people you know- like good old ma’ and pa’. It’s even got fancy pants features like repayment schedules, interest options, SMS and email notifications, Esigning, negotiating features and SAH MUCH MORE!

Credi doesn’t just help you manage your loans on your own, it protects relationships and helps you avoid disagreements. Simply put, “it’s changing the way we lend to each other”.

So let’s put it this way, adulting is hard and let’s be honest it’s a lot harder than it uses to be. So I think an important step to becoming an adult is to take baby steps- instead of a leap- and hey those steps may include borrowing money. Loans are great and all but if your parents are financially stable enough surely there’s a way to work something out.

So don’t be too hard on yourself, work hard and have ambitions for the future but most importantly of all, enjoy your life. We need money to pay for necessities and things in life, but we should let it consume us. And hey, when the going gets tough, our parents will always be around….and so will Credi- the platform that will help eliminate the nasties that come with loaning from family and friends.

 

 

Credi Pty Ltd (Credi) is not a bank or a financial lender. Credi only provides a platform that allows friends, family and third parties to originate, negotiate and conclude loan agreements amongst themselves. Credi does not provide advice, monitor or assess, agree, approve or decline any loan requests nor does the platform perform any funds transfer services.  The use of the Credi platform is governed by Credi’s Terms of Use

NOTE: The views and opinions expressed here are mine and do not necessarily represent or reflect the views of Credi Pty Ltd.

The Bank of Mum and Dad….. Um, yes please!

BOMAD – It’s a crazy idea having a Bank of Mum and Dad isn’t it? But in today’s day and age, has it become essential for the those swimming in debt from university. The question I’m trying to figure out is whether it’s a bad idea overall for us Gen X and Y’s who seek independence and spending freedom to use or even come to rely on the ‘Bank of Mum and Dad’.

The rebooted Bank and Mum and Dad got its origins in an age old lending practice. I remember being told that my grandparents used a loan from their parents to buy a restaurant in Northbridge in 1948. Even though it was an established practice back in those days it didn’t have a name – it was just what you did – get help from family, not the banks. During the early 2000s banks took over and easy credit was available. That’s changed too. Today people are increasingly turning away from the banks and relying once again on friends and family for financial support. Many of my friends are perfect examples getting support from the Bank of Mum and Dad while studying and getting on their feet.

There are significant benefits of borrowing and lending from the Bank of Mum and Dad. Many of which (or the most important to me) surround the idea of not drowning in debt.

Mortgages, credit cards, registrations, repayments, deductions, HECS and fees are some of the expenses that drain our bank accounts daily. I feel like the expenses of a Gen X and Y within today’s society are constantly growing, ultimately making myself and most of my fellow youth hate the big banks and businesses. Everything has a cost, and the lure of a small monthly direct debit sounds great, but they add up fast, and then your finances are squeezed and these monthly payments out of your bank account just keep on coming.

The idea of the BOMAD also becomes a sound idea when you consider the removal of the negative features that are attached to a bank loan or credit card. The most important one that constantly rings on my mind is the idea of interest and how much a company can make off us. From the Bank of Mum and Dad interest is hardly ever an issue and if it is there at all. It certainly isn’t ever nearly as steep as a bank loan. Another consideration is that there’s no damage to your credit rating if you are late or can’t repay for a couple of months, which let’s face it, could be detrimental in the future when you need to take on a mortgage or can’t go to the BOMAD.

However, as we look closely at the appeal of the positives of using the BOMAD, we can’t help but establish the dangers and negative aspects when borrowing from family.

For me borrowing money from my parents can turn sour very quickly. When an argument arises, bringing up a past loan and using it against me is an automatic response.

In my parent’s eye borrowing money from them also gives them the right to complain about my spending habits and that may ultimately influence them when I’ve asked for help.

Along with arguments and bitter endings when borrowing from parents comes the issue of repayments. I’ve never had the steadiest of incomes and money coming into my accounts always fluctuates. So for me skipping repayments or saying I’ll give it back soon plays from my mouth like a record on repeat. In my mind, I always hope that there’s an off chance they’ll let me off paying it back. That maybe if I don’t mention it, they’ll forget about it or even let me off. But nope, let’s not get too excited, that barely ever happens and just makes them mad that I’m not paying it back.

Besides all these relationship dramas when borrowing from the Bank of Mum and Dad, we also risk putting our parents in an undesirable financial situation. Along with all the bills and payments our parents have to pay, further expenses surrounding health tend to arise as they grow older – because let’s face it, we can’t all be young and healthy forever.

When I made the discovery of Credi.com, things became a little clearer. Let’s start with their motto, “A company empowering the bank of mum and dad”, this got me searching straight away! Credi.com is a platform that allows people to formalise their loans and then manage them – protecting their relationships, avoiding disagreements. Our platform provides users with transparency, flexibility and formality to informal agreements. The best thing being we don’t touch your money, we just help facilitate the process of a loan between family and friends. Not only can you navigate the system fairly easily, Credi.com pretty much formulates everything for you – just add the details.

After this discovery I felt like the BOMAD wasn’t such a bad idea. Not only does it feel comforting to be able to get financial support from people we trust and love, but it can also be done in a way that can be managed like a formal loan and not impede on a relationship. Next time I need financial support from my parents, I’ll have the peace of mind knowing everything will be safe and secure through Credi.com.

#FinHealthMatters #FinHealthMatters! #FinCon2017 #FinCon17

 

 

 

Credi Pty Ltd (Credi) is not a bank or a financial lender. Credi only provides a platform that allows friends, family and third parties to originate, negotiate and conclude loan agreements amongst themselves. Credi does not provide advice, monitor or assess, agree, approve or decline any loan requests nor does the platform perform any funds transfer services.  The use of the Credi platform is governed by Credi’s Terms of Use

NOTE: The views and opinions expressed here are mine and do not necessarily represent or reflect the views of Credi Pty Ltd.