Canadians Should Ask Your Friends And Family For A Loan This Christmas

I can only think of one better time to ask friends and family for money after having a child, and that is Christmas. One of the biggest celebrations in Canada, it is the time of year when you meet up with your family and friends, receive and give gifts and be happy!

Awaited by many, it brings the arrival of a new year and fresh beginnings along with it. Sometimes it so happens that you can’t loosen up the purse strings. Prior commitments, large debts, repayments and other arrears decrease your purchasing power at this time of the year. Also, a major part of this is cash flow which is really only a pay check away… after the holiday. Therefore many ask for loans from Friends and Family during this time.

However, we also tend to meet with friends and family and discuss new business ventures, investment opportunities, weddings, new events in one’s life, school and educational development and the funds related to these endeavours. The reality is, sometimes you need to prep those close to you that you are going to ask for money, so here are some suggestions:

1. Call ahead and mention that when you see them at said event, that there is something you want to discuss with them with regards to a new business, educational endeavours, the wedding, whatever might be what you need funds for. They may ask what you would like to discuss, but simply either mention you would like to discuss in person, but if they are perisistant, you can open up.
2. If you told them you may discuss funds, and they are open to the idea, you may want to mention that you have organized your finances and would like to make sure you bring a loan document to the event with them. Especially if you have already discussed general numbers you need and what they can afford. If you didn’t tell them, don’t worry they probably already know. Just be prepared to discuss with them how much you need, the use of the funds, and the fact that you would really like to document it and make sure they get paid on time and with interest. The with interest factor does play a part.
3. If you have any outstanding loans, part of the discussion with the family member would be to put the new funds and the old funds on one agreement plus interest, and that you would like to put the debts on a payment plan to make sure they get paid. That you have read this is the best way to handle this situation. Chances are the other debts are not even in writing. The addition of these in writing may give the person giving the loan an overall sense of security with the matter.
4. Don’t discuss the matter in front of a room full of people. Mention that you want to discuss that “thing” you mentioned beforehand. It helps pull away the friend or family for a moment without making them feel odd because they would expect it was to happen. If they delay the discussion, just ask when is best.
5. Try not to have the discussion when someone is drunk, so prior to the festivities. What is said under the influence is often followed by remorse and inability to deliver on promises, and sometimes ill feelings both mentally and possibly physically about promises they regret making. It is generally best to come before the guests and before the alcohol to discuss matters of this importance.
6. Use the key words, that they will get Interest Paid, higher than the Bank, that they will get a loan document and the security in knowing there is a payment plan clearly described.
7. Listen to what they have to say, and what they are asking for in return for the funds, often the final closing question for someone who is humming and hawing is what would be the terms they would need in order to get the loan completed.

Those are 7 quick tips, I hope you enjoyed them.

Sincerely,

Written by Ryan Anthony Gibson