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.


*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.


**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.


***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.


****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.


*****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.


******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.


*******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.


********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.

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

MrKnowitall

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region. Shoot through an email and one of our editorial team will get back to you. By AZoMining Editors Topics CoveredWelcome to IrelandOverview of ResourcesMetalsIndustrial Minerals and GemstonesInvestmentSources Welcome to IrelandIreland is a small island nation located to the west of United Kingdom. The total area of the country is 70,273 km2, and it has a population of 4,722,028 as of July 2011. The country’s climate is mostly temperate maritime.The national flag of Ireland.Image Credit: CIA Factbook.Ireland gained independence from UK after years of guerrilla warfare and then withdrew from British Commonwealth to become a part of the European Union (EU).Ireland has a trade-dependent economy, with minerals accounting for 1% of its exports and the mining sector accounting for 1% of the country’s GDP. The financial downturn during 2008–2010 badly affected the mineral industry. The budget deficit of 2010 reached 32.4% of the GDP making the deficit the largest in the world. The country’s GDP as of 2011 was $183.9 billion.The mining industry of Ireland is small, employing about 1000 people. The natural resources of the country consist of silver, copper, lead, zinc, natural gas, peat, barite, limestone, dolomite, and gypsum.Overview of ResourcesIreland is one of the top producers of lead and zinc in the world. However, the mining sector and related industries added only a small percentage of the country’s GDP.Most of the mining companies are privately owned. As a member of the EU, 50% of its exports go to countries within the EU.The major mineral export partners of the country include:United States, 22.1% United Kingdom, 16.1% Belgium, 15.1% Germany, 8.1% France, 5.3% Spain, 4.2% The map of Ireland. Image Credit: CIA Factbook.MetalsThere are five operating mines dealing with zinc and lead mining in Ireland. Out of the five, the Tara lead and zinc mine, in Navan, Co. Meath, owned by Boliden Tara Mines Ltd. (a subsidiary of Boliden AB of Sweden) is considered to be the leading zinc mine in terms of volume in the EU.In early 2010, Galmoy Mines Ltd. resumed lead mining operations at its Galmoy Mine after being shut down due to the global decrease in prices of base metals in 2009. The Galmoy underground zinc mine is under closure status as most of the remnant ore has been extracted. Mining operations are expected to conclude during the course of this year but the sales are stated to continue till early 2013.In 2010, United Company RUSAL of Russia also resumed operations at its alumina refinery located in Aughinish Island. The company produced 1.86 million Mt of alumina, which was a 50% increase in comparison to the production statistics of 2009.Industrial Minerals and GemstonesDolomite and limestone are produced by Roadstone Wood from an open pit mine at Maddoxtown.Irish Gypsum conducted gypsum extraction from two mines in southern Co. Monaghan.About 300,000 t of gypsum was produced from an opencast operation in Knocknacran and an underground mine at Drummond in 2010.InvestmentIreland’s zinc ore mining operations are expected to continue steadily in the coming years, and experts state that the country is likely to remain a substantial producer of alumina and lead ore.Many mining companies are conducting exploration activities to locate new mineral resources, but the importance of gold, lead, and zinc will remain unchanged.The country is keen on improving its oil and gas exploration activities to upgrade the energy sector, especially exploration activities for petroleum and gas off the coast of Ireland.Companies such as Connemara Mining, an exploration firm, continue operating in the mining sector and own several licenses including zinc/lead exploration licenses. Several surveys indicate positive results for gold mineralization on the Wicklow-Wexford border. It owns 34 licenses covering an area of approximately 1,250 km2.Ireland’s mining sector may not be a very significant contributor to the economy but it is definitely on the path to steady growth and development.Disclaimer: The Author of this article does not imply any investment recommendation and some content is speculative in nature. The Author is not affiliated in any way with any companies mentioned and all statistical information is publically available

Thanks for sharing this OP.

It is a very practical article which i can verify from my personal experiences.

@ lalasticlala, Ishilove, Seun....FP

Adesiji77:
Thanks for sharing this OP.

It is a very practical article which i can verify from my personal experiences.

@ lalasticlala, Ishilove, Seu.n....FP

We've featured it

lalasticlala:


We've featured it

This particular one?

I know there has been a similar topic but i dont think that it's identical to this one.

Maybe I missed it then...only noticed that there has been no comments.

Cheers.

lalasticlala:


We've featured it

This particular topic was posted around 10am while d other similar topic was posted around 1pm.

Does this mean that what they say about you guys looking @faces b4 featuring a topic is true? Cos going by the normal standard, first come, first serve.

Chinum:


This particular topic was posted around 10am while d other similar topic was posted around 1pm.

Does this mean that what they say about you guys looking @faces b4 featuring a topic is true? Cos going by the normal standard, first come, first serve.

The topic made FP week ago

lalasticlala:


The topic made FP week ago

While this thread was created on the 21st of May.

Chinum:


While this thread was created on the 21st of May.

I don't knw what you are insinuating. All I knw is that we have had this particular topic featured weeks back. Can't find the thread would have provided the link.

Chinum:


This particular topic was posted around 10am while d other similar topic was posted around 1pm.

Does this mean that what they say about you guys looking @faces b4 featuring a topic is true? Cos going by the normal standard, first come, first serve.

At the bolded, did I look at your face or whatever before moving these topics to FP?

See them


https://www.nairaland.com/2350127/osinbajo-formally-takes-over-villa


https://www.nairaland.com/2330037/baby-born-traditional-beads-lagos

You people are quick to make preposterous assertions...
You think I have time to look at people's faces here, I don't even care about people's profiles...


Meanwhile, here is the thread link which indicates that this thread has been featured on FP before. I had to go dig it up.

It was the same Adesiji77 that brought my attention to the said thread. https://www.nairaland.com/2328152/lending-money-friends-hardly-pay#34115038