Over the past year I have been doing various pieces of renovation work to my house. My goal is to rent out a few of the rooms to ease the financial strain on me. When it came time to finance my project I found that banks were anything but helpful. The few that were willing to loan me the small amount were still going to charge an interest rate of nearly 10 percent. For this concern we can look at https://zebraloans.co.nz/ac to get all the information about loans to choose best scheme for us. I was speaking to a close friend of mine about my predicament and out of no where she offered to loan me the money. I was at first reluctant because of the possible strain these things can put on friendships. However after careful consideration I agreed. With banks tightening their lending policies I have found several advantages to bypassing them and getting the needed funds in other ways.
Friends Don’t Put your through Credit Checks
Friends know you. And if they trust you they know that you will pay them back anyway you can. To a bank, your nothing but a statistic and a risk factor. Chances are the more you need the money the less likely a bank is going to be in lending it to you. However a good friend will likely try to help. Although my friend wasn’t going to check my credit rating I did make sure I approached her in a professional way. I devised a plan in which to pay her back so she would feel more comfortable about parting with her hard earned cash.
Friends Tend to Be More Understanding if there is a Problem.
This were going along fine with my repayment schedule but in the spring I hit a bit of a set back. I did let her know straight away and she was fine with it. Banks will also likely be fine with it as well because it means they have the perfect excuse to raise your interest rate or slap a penalty charge on you. Friends tend to be very understanding if they know you are doing everything you can to pay them back.
In my case my friend didn’t ask for any interest. However if you are borrowing money over a significant amount of time making the offer of interest is a nice gesture. Although my friend never expected any, I did give her an extra 30 pounds as a thank you gesture. This worked out well for both of us. It was less than I would have to pay out in interest over the year. It was also far more than she would have made in interest than if she had put her money in the bank. Banks currently are paying ½ of one percent which would have yielded 2.50£ over the year.
My friend and I have been happy with our arrangement. She got to help me out and I’ve proven myself and a worthy investment. You do need to keep in mind that banks are insured and friends are not so be very cautious of amount borrowed and your ability to pay it back. However, with some caution and good planning why not bypass the banks and see if you can come to a private arrangement.