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Common Questions about Loaning Money
What should I include in a Loan Agreement?
While the primary content of a loan agreement will likely be the amount lent and the due date there are other important factors to consider. Be sure that any loan you enter into has a clear payment structure, interest rates, and terms covering any penalties should payments be made late or not at all. If the loan is for an object then be sure to define liability--who is responsible if something happens to the property and who, if anyone, needs to insure it.
What’s a secured loan?
In a nebulous financial situation a secured loan can provide assurance to lenders. A secured loan is simply a loan with some collateral behind it that the lender will receive if the borrower defaults. Common secured loans include mortgage loans and auto loans.
What can I do if my borrower isn’t paying me back?
Collecting on a loan can be frustrating, but if your buyer isn’t paying you in full, there are a few smart tactics to try. The first one is simple: ask again. Politely reminding a borrower, or giving them a few extra days to pay without escalating, can really make all the difference. After that, you can send notices demanding payment, restructure your loan to make payback easier, or, if worst comes to worst, sell the loan to a debt collection agency.
How do I get a home loan?
Getting a loan can be as simple as an agreement and a handshake, however, when you’re borrowing money for a home it can get more involved. Typically the loan begins with an application at a bank or other lending institution. They’ll want to do a credit check and take a look at your financials before they give you money, however. It’s a great idea to have a clear and clean financial picture when you’re considering home purchase, if at all possible.
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Rocket Lawyer Specialist (877) 881-0947