Asset Purchase Loan: Friends and family will loan money for the purchase of assets as it is seen as advancing the ones they care for and inevitably it is secure as long as the asset is taken care of. These loans generally are car loans, home loans, office equipment loans, buying a business or franchise loan, etc. Friends are especially inclined to lend the money if it is an asset that both the buyer and the lender can enjoy, such as Boats, Motorcycles, seadoos or skidoos, a summer cabin, etc.

Last year in Canada approximately 21 million Canadians either lent or borrowed money from friends or family members, but only 17% actually put the loan in writing. Close to 54% of the undocumented loans were not paid back. It has been proven that if a loan is documented, the likelihood of repayment is significantly higher. Through this process we aim to lessen the default rate to under 5%.

Therefore, we encourage you to go to http://www.kasu.ca and create a loan document today to secure your friend and family loans, and ensure that you get paid back… eventually.