Make and save money by documenting a loan agreement

How to make and save money documenting a related party loan

Documenting a loan agreement to a related party is crucial – so why is it so rarely done? It’s the nature of the relationship between the parties to the loan that puts this important piece of administration onto the “do it tomorrow“ list. Organising a documented loan with a friend or business partner changes the relationship from a personal to a business relationship. Then there is the prospect of seeking formal advice and negotiation which could result in disagreements and friction. It all sounds too hard; ‘we’ll be alright…right?’

Relationship loans are a huge part of the Small to Medium Enterprise (SME) landscape. Businesses borrow billions of pounds from related parties to support their ambitions, yet fail to recognise the material risk to the transaction when they remain undocumented, leaving the ambiguity of a long forgotten conversation to raise its ugly head down the track. The relationship that underpinned the loan is then threatened, and may even break.

Source: http://xumagazine.com

Tim K. Dean, Credi Founder | Commentator & Expert on Family Lending, Bank of Mum & Dad and Neo-Credit Scores is available for media interviews and appearances. More…

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Credi Pty Ltd is a Financial Technology business, not a marketplace lender. Our mission is to change the way we lend money. We want to empower people to help each other and take control of their financial relationships without creating friction and stress.

Credi is the World’s #1 loan management platform for private lenders.

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Better Loan Documentation
& Management

Sign up and become one of the thousands of people and business around the world using Credi to protect them selves with robust loan documentation and management today.