There have been quite a lot of people who have lended people money for different things because they were friends, related to them or simply out of pity or compassion. But more often, such “good Samaritans” have ended up being taken advantage of because of their pity or compassion for needy persons. There are many who made such gestures to people only to end up regretting it for the rest of their lives. There are others who have sworn that because they were shortchanged when the debtor could not repay, they will not Lend anyone ever again. Now we are not against Lending people things. It is a fact that inasmuch as there are those who take advantage of people, there are also those who are sincere. Personally for me, Borrowing is not my thing. There are many whom I have told not to do it. Yet there have been times when I sincerely needed someone to Lend me something.
A short story on debts
There were some chickens I was training. And somehow they were struck by cocidossis. And the flock started dying in large numbers. So I had to get them anti-cocidosis. I was short on cash at the moment. There was money I was expecting, but it had not yet arrived and the chickens were dying. So I ran to a vetinary shop to get anti-cocidosis. The vendor after telling me the price asked if I was ready to buy. I told him yet, but explained my predicament to him. I then asked him to Lend me the drug and that immediately I received the money I would come give it to him. The man was reluctant and related to me how himself had done such gestures for many in the past and ended up in regret. I assured him that I was going to pay him. Then after much pleading he accepted my plea and lended me. The chicks recovered and in the next few days the money I was expecting came in. Before doing anything with the money, I firstly went to pay him. The reason why I mentioned this story is to let you know that even if you have been disappointed by those whom you Lended something in the past, there are still people who would keep to their word when they tell you they will pay you. However, there are certain precautions you should take when Lending anyone money for any reason whatsoever.
1ST RULE OF LENDING PEOPLE MONEY: DON’T LEND ANYONE MONEY THAT IS NOT YOURS.
This may seem to be a no brainer, but we mention it here because of how people seem to do this very often. Someone gives you money to keep or execute a project or something else. Another later comes to Lend money from you, then you get over emotional and Lend him/her someone else’s money. The first reason why you should not do that is because it is plain wrong. You have no right to Lend another what is not yours. Secondly, should it happen that the person does not pay, you are in very serious trouble, as you would be the one that would have to pay the debt on his/her behalf.
2ND RULE OF LENDING PEOPLE MONEY: LEND WHAT YOU CAN AFFORD TO AND DON’T GO BEYOND IT.
Now who is out there today that gives out his own lamp to another while himself remains in darkness? Whoever is Lending anyone money should ensure that himself does not Lend away money himself needs for his own upkeep like feeding or transport costs? In other words, do not Lend anyone to the extent that himself you have nothing to live on. That is Lending only on extra disposable cash, not out of cash you live on.
3RD RULE OF LENDING: LEND ONLY SUCH AN AMOUNT THAT WILL BE CONVENIENT FOR YOU TO FORFEIT, SHOULD THE PERSON BE UNABLE TO PAY BACK
No matter how the person who requires money is well known to you and is trust worthy, there are always unforeseen circumstances that can arise unknown to both him and you. These circumstances can make it unable to for that trustworthy person to disappoint you. Not by his own decision, but because of reasons beyond his control. So you should be a proactive person who considers the possibility of the person being unable to pay. And the only way to be prepared for this is to make sure that you Lend only as much as you can spare. That is money that would not affect you much if the person does not pay. Failure to do this may leave you with deep regrets should the debtor default in fulfilling his word.
4Th RULE OF LENDING: DEMAND FOR A COLLATERAL OR GUARANTOR WHERE NECESSARY
People have fallen victim of these things often times because they have been too trusting of borrowers. Listen, an adage says, it is not the same tone someone uses to come request for a loan that himself uses when going to pay back. It is simply the nature of man. So no matter who is involved, if you really want to be secure, demand for collateral or ask for guarantors that are capable of paying back the debt should the borrower default and is unable to pay you.
5TH RULE OF LENDING MONEY: LET THERE BE A WRITTEN AND SIGNED DOCUMENT PROVING THE LOAN YOU GAVE
It is very easy to deny anything that is not documented, especially a loan. Some people are so wicked that they can out rightly deny that you ever gave them anything. This is usually a strategy people employ to escape the duty of paying their debt. But this will be to the detriment of you lending out the money, so ensure that the loan you are giving out is documented and there should be columns for the borrower to sign in the presence of witnesses. This will rule out the possibility of any denials happening after you have been generous to anyone.
6TH RULE OF LENDING: TRY AS MUCH AS POSSIBLE TO AVOID LENDING PEOPLE WHO ARE TOO CLOSE TO YOU.
There is an adage that says; Familiarity breeds contempt. Lending money to relatives and colleagues may mean that you are not going to be paid that money. This is because there is already a sort of friend relationship between both of you which can lead them not to take paying you as seriously as they should. Also the relationship makes them assume that even if they refuse to pay back, there would be no dire consequences from you. All these are barriers to you receiving your payment. So if you can, rather give to those who are close to you, instead of Lending them. If you wish that your relationship with them is preserved.
7TH RULE OF LENDING: DEMAND FOR REFEREES
Depending on the amount you are lending, try asking who is coming to borrow money from you to give you the contact details of those who have Lended him money in the past and have received payment from him. If himself can provide up to three referees, that is an indication that himself tries keeping up with his word. But if himself cannot provide such referrers, that in itself should be a warning sign to you
8th RULE OF LENDING: MAKE EFFORT TO KNOW WHAT THE LOAN WILL BE USED FOR.
Dont just lend people. Make effort to find out what that loan they are collecting from you will be used for with sufficient proof backing it up. The story was told to me of a woman who Lended a man money. The man in question ended up using the money for playing Lotto, and gambled a hundred thousand away. The woman lost this much because herself was not meticulous enough to ascertain what the loan will be used for before giving it out. You should never make such a mistake. If the person insists that it is confidential, then do not give out anything. If the loan was demanded for a genuine cause, they would really have no problem declaring the reason why.
These Precautions should Guide you not to lose your finances, and if followed carefully will ensure that those who owe you eventually pay you back. Should they default in any way, it would not be that devastating to you, because you were already prepared beforehand. Try to plan for the worst case scenario when you are lending anyone things because the future can never really be totally predicted.