A friend recently complained about a colleague who cried that his wife was going into labour and needed a loan of N100, 000 with a promise to repay by the end of the month. One year down the line and the stories keep changing. In fact, the matter has threatened to ruin their relationship with my friend considering taking the matter to the human resource department of the company.
How often do you find yourself in a position where you lend money to a friend or family and never get it back? They approach you with cries of desperation and promise to pay back after a specified period only to come up with stories when its time to repayment time. I get approached too and often fall victim. I have learnt from being a victim and often use the following tips to avoid falling again.

1. Number one rule is to remember it is easier to borrow and lend than to return after lending.
If you have this at the back of your mind all the time then your default response will always be a NO. But there are cases that require compassion too. When they arise your adamant nature will warrant that you reverse the notion by making it difficult to lend and easier to refund after lending.

2. Create a barrier by introducing third parties to the transaction.
People who borrow money or seek your money for investment always come with compelling and convincing tales. They are also very much in a hurry to get the money from you giving you the impression that all hell is about to let loose if you don’t act quickly. The problem however is that, when it comes to getting your money back, that urgency is suddenly transformed into pestering. So for those who are vulnerable to sweet talks, one way of deal with a suitor is to refer him or her to a third party. Tell your borrower you understand the situation and want to genuinely help but your lawyer or accountant has to work out the details. That way someone else who is neutral and less biased is suddenly the decision maker in all of this. Whilst in real terms the final decision lies with you, a third party may help you see other risks that you may have missed and also put the borrower under pressure to convince another person.

3. Ask for a guarantee or security.
Just as above, to make it difficult for the suitor or borrower, give them conditions that must be fulfilled before you part with your money. For example, ask for a collateral or a guarantee from a recognised cleric. You will be shocked that even a common request for an application letter can often be difficult for a borrower to produce which in no small measure sends them away naturally. A borrower who doesn’t show seriousness to meet this conditions will more often that not break their promise to refund.

4. Confirm as reasonably as you can proof of need for the money.
This can be difficult and not applicable in some cases but if applied it can help avoid any incidence of fraud or default. For example, if they come to you for money to finance a Local Purchase Order, simply ask for a copy of the LPO. If they do not have it then don’t give and if they do, ensure that it is the borrower’s name that is on it and not a third party.

5. Obtain quasi security documents like post dated cheques.
Most loans to friends and family hardly get covered by collateral. However, you can still request for other documents such as post dated cheques, promissory notes etc. While they are subordinate to registered collateral such as land, they can be quite useful in terms of settlement. A bounced cheque for example is an offence punishable by law. A serial borrower who issues a dud cheque is therefore at risk of going to jail which serves as a good deterrent.

6. Keep in touch regularly and pester where necessary.
Most of us make the mistake of not keeping in touch with our debtors. Because they are friends we hesitate to bring up the issue even when we are constantly in touch. Finance experts advise that we continue to pester and remind our debtors that they owe us. This creates a lingering sense of responsibility, which can only help you recover your money.

7. Never lend to a previous defaulter.
Once beaten twice shy. Ironically borrowers are often shameless and will not think twice about coming back to you again for another loan. If the borrower is someone who never repays or takes time to then you may do yourself a lot of good by not lending to them again no matter the circumstance.

8. If you are soft hearted then only lend what you can afford to let go.
Some of us are very vulnerable to bad debts because we are just too compassionate to say no. However, being compassionate does not mean we loose all sense of responsibility. If you are compassionate then just lend what you can afford to let go.

#WiseUp my goodhearted people

http://www.punchng.com/business/am-business/lending-money-to-friends-who-hardly-pay-back-2/

DAT na long thing.

but you can use any of the below procedure.

1) try seizing his or her phone, laptop or accessories
2) ask for your money in public, ask in an embarrassive crithoto
3) visit babalawo to give you charm that can make im or her return it even if it mean lending from anods person to pay you
4) bone the matter, act like you ve just don't fisabililah/donation.
5) visit www.howtoretrivedebt.com

Since you know the person doesn't pay, then it makes sense that you only lend what you can easily forgo. Consider it as a gift to him from day one. If he pays, fine. If he fails to pay, you won't carry pains.
That has been my policy.

My own opinion is never to borrow anybody money, what you should rather do is to give, if for instance someone wants to borrow 50,000, Jst give d person about 5k or 10k or more if you can and let the person know you are giving him and not borrowing him and source for the rest. Rather than borrowing him and he will be giving you stories

What Is The Solution For Retrieving A Loan From Your Inlaw And You Dont Want To Spoil Your Relationship.

Just come to ogwugwu akpu okija
Am the chief incharge there.

magaliyu:
What Is The Solution For Retrieving A Loan From Your Inlaw And You Dont Want To Spoil Your Relationship.

good question....u spoke my mind

missKiffy:
My own opinion is never to borrow anybody money, what you should rather do is to give, if for instance someone wants to borrow 50,000, Jst give d person about 5k or 10k or more if you can and let the person know you are giving him and not borrowing him and source for the rest. Rather than borrowing him and he will be giving you stories

Exactly.

Another way is, when you notice the person doesn't want to pay, don't mention about it for a while probably 2-5months. Humans tend to forget their mistakes and you can take advantage by asking for a loan of the same amount.

When the person asks you to pay back, you can remind hin/her of their previous debt

Nice piece....FP things @ lalasticlala

Never again

I will rather give and not bother to recover.
I wont give out what I can not forfeit.

Simple!

I have a policy.

Never lend money to people.

Rather, assist them with the little you have for free.

Give him the little you have for free that won't hurt you.

In my opinion...any money borrowed to my friend is like a dash
Your relationship is more important than the money.

That's why i like lending to girls, if they can't pay back in cash, they'd pay in kind

I don't borrow money to friends again, ask me for 10k, I'll rather dash you 1k gladly and free myself from the stress

I don't lend money

Ok

that is good

i have been a victim many times so if any one ask me for money i just tell a them a [size=20pt]STORY[/size] that will make pity me and wish they never came to me

.

givers never lack.

Rule is never lend whst you can't do without.
Even if you have to lend, make sure you truely know that person even if he's your friend. Money is something else

.

magaliyu:
What Is The Solution For Retrieving A Loan From Your Inlaw And You Dont Want To Spoil Your Relationship.

Forget it, why did you give loan to your Inlaw? He will always not want to pay back. Best is to just give whatever you can give to help his ministry.

Right now a friend is owing me 450k which he invested in fixing his 2 haulage trucks since January, it's been story after story. I am even tired.

OK

OK

@ OP,U are so on point.

Never borrow money you can't afford to lose

Very easy for me.I don't lend,I 'dash'
Friend;Babe can you lend me 20k?will pay next week.
Me;20k?babe I don't have that kind of money,but I fit dash you 5k Wey I get currently,go and hustle for the rest.

Better,I dash than calling begging and arguing over 20k payment that may come in small small bashes.


Na that time you go hear bullshitts like "na because of 20k?"