There are some things that you have to consider when lending someone money. Not all people who borrows money are bad, sometimes there is really an emergency that they don't expect. Their only mistake is they don't save money for the future, they are not anticipating any emergency that may happen. If your lifestyle is like work then earn then spend it all then you are in big trouble my friend.
Life is very random, there are unexpected events that may happen so you must always be prepared so you will not kiss someone's ass in exchange for help.
But if you are the one who will lend the money there are some things that you must consider to make sure that your money will comeback to your wallet. You have to take precautionary measures so you will not end up looking like a loser.
1. Know the background of the borrower. You should study well the life of the borrower. Even if you know him for a very long time. You must be aware if he is a good payer or not, you must ask some people that you know that he also know, ask them if he is a good payer or not. If you like what you hear then lend him some money. Make his life a little lighter.
2. Make sure he will use it for emergency purposes or for important things. The deadliest disease of the borrowers is they will borrow some money and will just use it for their hobbies, leisure and any other unimportant things. Some people borrow just to buy gadgets or shirts which is stupid. Make sure the borrower will use your money for real important things because if not, there is a big possibility that your money will not come back. A good payer is responsible in handling money, he will not use it for stupidity. He will not put himself in a bad spot, he respects you so he will use your money to make his life better because he want to return the money to you.
A bad payer will use your money for his own good, he has no intention to return it so he will use it for leisure.
3. Make sure the borrower has a stable source of income. Even if the borrower has a reputation of being kind and honest, if he has no stable income then how will he be able to return your money? be wise when lending someone, always see to it that the borrower has the ability to pay back. And also ask for his monthly income or even the payslip so you know that the amount you lend is payable by his means. Don't be shy to ask because you are the one who is in control here, you are the one who will help.
4. Get an insurance. You ask him to leave you an important thing that has a value. It is either some pieces of gold or a new cellphone. It is like a kidnap for ransom case, if he will not return the money then the hostage is yours. Always see to it that the value of the hostage is equal to the value of the money borrowed. If he borrow 150 dollars then the cellphone or gold should have the same price. If your money is greater than the hostage then chances are your money will not come back.
5. Look furious. Don't look kind if you are lending some money. Make him feel that if he will not return it then he is in real trouble. Fear is a great motivator, fear will make someone move. Sometimes you have to scare someone so he will follow your terms. When both of you are talking, make sure your voice is strong, make sure you look very confident and someone that is mean when a person double crosses you. Project a self image of a person ready to kill if someone disappoints you.
6. Create a timeline. 2 months is enough to return your money. Make a timeline so the borrower will be forced to work hard to get your money back. If there is no agreed timeline then the borrower will relax and not be cautious that he owes someone. Creating a timeline will make the borrower have a sense of urgency, he will find a way how to return your money back and he will do it if he is always aware of the timeline.
7. Make a condition. Explain to him what will happen if he didn't return your money. It is either you burn his house or you tell it to the public that he is not a good payer. Don't be scared to make conditions, let me remind you... you will not really do it, you are just instilling some fear in his brain so he will always remember that he has an obligation. Make a condition that is very scary and will make him pees on his pants if he didn't return the money.
8. It is better to not not lend anyone. If you don't want any trouble then it is better not to lend money. After all, you work hard for it and you don't want it to evaporate for nothing. Point the borrower to someone where he can lend some money. The good option is someone who makes lending as a business, for sure he will get some and his problem will be solved for a while.
There are more things to consider when you are thinking about lending money to someone. There is nothing wrong in lending someone especially if he is really in danger or his family haven't eat yet for 5 days. But before you lend someone, always make sure that it will come back because it is very difficult to earn money nowadays, lend money to someone who deserve it, lend it to someone who will return it back. Always be careful because people are very kind and deceiving when they are borrowing money but when it is payback time, their colors are changing.