Top five things to note before you lend money

I have loaned and lost quite a few times in my life— whether it’s to people I know or people known to the people who know me. And that includes family and friends and friends’ friends. While some of them have been able to pay religiously, others simply vanished into thin air. Which is why I decided to make this list of the top five things to note before you lend money- so others don’t suffer the same sad fate.

1. Make sure you know the person well enough

Do you trust the person who you’re lending to? Make sure you have some history, as well. Something to convince you that this person will stay the long haul with you. If not, make sure you like the person well enough–so in case he/she runs away with your money, you would be able to forgive.

2. Make sure you know his address or place of business

It’s not enough that you know the person’s number. That can easily be changed with a new SIM Card. Or a new plan. Know where the person lives. Know where he/she works. Better yet, know some people in his/her circle. That will give you some sense of security knowing you have enough of his contact info.

3. Make sure you are willing to lose that amount in case you don’t get it back

This is very important. Do not loan out an amount so huge that you will regret later on.when someone borrows 5k, you can simply lend half that. That way, you know you were able to help out- even if you don’t give the full amount.

4. Make sure you get a collateral no matter how small

Take his or her ring or a watch or a tablet in exchange for the loan. Take anything of value from the borrower. That way, you have something with you, at least, for that long road you need to take before you get paid. (And also to make you feel like you weren’t totally double-crossed in case he or she escapes with your money)

5. Make sure you have strong faith in the Lord

This fifth thing, believe me, will carry you through the ups and downs of a loan–from releasing it and most especially, when you’re trying to get your money back. You need prayer so you can have the patience to wait; patience to accept when you’re asked for an extension; and, self-control vs. rage for when you’re told over and over again by the borrower that the payment cannot be done.