Everything You Should Know Before Lending Money: Risks, Agreements, and Smart Practices for Protecting Yourself
Lending money to friends, family, or even strangers can feel like a generous gesture, but it comes with its own set of risks and responsibilities. Whether it's a small loan or a significant amount, being informed is your best defense. If you're considering getting involved with money lent in Sydney , this guide will walk you through the essential factors to ensure you're protected legally and financially. 1. Understand the Risks Involved Before you hand over any cash, you need to be clear on what’s at stake: Non-repayment : One of the biggest risks is the borrower failing to repay the loan. Damaged relationships : Lending to family or friends can cause personal strain. Legal complications : Without a formal agreement, proving the terms in court can be difficult. If you're offering money lent in Sydney , these risks apply no matter how trustworthy the borrower appears. 2. Always Have a Written Agreement Verbal agreements are legally weak. Protect yourself b...