Business deals with family and friends usually don’t go as planned. This is why people tend to shy away from any business that relates to a family member or a friend.
If a family member or a friend is asking for a loan and you feel like you’re about to be guilt-tripped into it, here’s how to make the most of it.

Before loaning money to family or friends;



Make inquiries

This is money we’re talking about, your money nonetheless. You need to find out where it’s going and the chances of it being recovered. If it’s not for a lucrative deal, you’re probably never going to get it back. The person in question might not be totally honest with you; sugar coating it so it sounds more appealing than it really is. Ask for time to decide then use that time to investigate some more. There’s bound to be another family member or friend who knows the entire truth and is willing to come clean somehow.

Don’t be sentimental about saying no

There are no sentiments in business. If after weighing the pros and cons, you still aren’t feeling their reasons for asking for a loan or your gut is telling you not to give them the loan, don’t be too scared to let them know. State clearly, why you won’t be able to give them the loan and leave no room for them to try and convince you.


Read more at: http://www.virtuedigest.com/dont-lend-money-friends-without-steps/

Friends and family are not to be loaned.They form the habit of not paying back.I loaned a friend 50k to pay his child's school fees,2yrs now he is yet to pay up.Money given to friends and family should be considered as gift.My 2 cents.

debokaz:
Friends and family are not to be loaned.They form the habit of not paying back.I loaned a friend 50k to pay his child's school fees,2yrs now he is yet to pay up.Money given to friends and family should be considered as gift.My 2 cents.

Friends and/or Foes.
Bros - only lend what you can afford to loose