What To Consider Before Lending Your Business Money

Dirk Kettlewell, a business expert states that lending money is like creating a secret enemy if refuse come in. Contrary to that, lending your business money is a huge risk that one is taking. No one is ever at ease when lending money especially to a friend where friendship and emotions are involved. This is why Dirk Kettlewell wants you to consider certain things before lending out your business money. Before you lend out your business money, you must consider the purpose for borrowing. Is the money going to be used to fund or expose forces that are against your business? You must ask yourself that question. If there is inappropriate reason as such, do not let it out.

When lending out your business money, Dirk Kettlewell advises you to lend only the amount you can afford to lose.  It is prudent to do that since you will be able to still move on with your business even if the borrower does not pay you back on time. You must draw a repayment plan. This is to ensure that all parties’ expectations are met. Have a written agreement. Though the amount to be borrowed may be little at some circumstances, it must still be written down and signed by both parties. This will act as an evident when legal matters are to be followed when the parties failed to meet their demands. Finally, you are to act in a professional way when collection times come. Remember that it is your business money that you are going to collect. Therefore, you must behave diligently.