- Step 1: Decide who to ask Make a list of friends and family members who you would like to ask to borrow money.
- Step 2: Calculate how much you’ll need Calculate how much money you’ll need. Write it down in a contract format.
- TIP: You can find generic contracts online.
- Step 3: Write down what it will be used for Write down what the money will be used for with as much detail as possible.
- Step 4: Develop a repayment timeline Develop a timeline for repayment, and add that to the contract.
- TIP: Offer up collateral if possible – a car, a piece of jewelry, or something else of value. It should be worth close to what you’re borrowing.
- Step 5: Make an appointment Make an appointment or arrange a meeting to ask them in person.
- Step 6: Present the plan Present the amount needed, what you need the loan for, and the repayment plan. Offer to have it notarized once you reach an agreement. Don’t forget to say thank you.
- FACT: Did you know? As much as 14 percent of money in the U.S. loaned to family and friends does not get paid back.
You Will Need
- A list of friends
- A calculator
- A contract