The Hard Case Loan: In some cases the hard case loan is when a friend or family member is literally buried in debt, interest and payments far exceeds what is coming in and they need to borrow money to pay off existing debts or be pushed into bankruptcy or ruin their credit rating. Generally all of the assets are financed to the hilt, and their last resort is friends and family or bust. The extreme situation they are in will drive friends and family to try and help them. This may also include the person lost their job or doesn’t have sufficient employment or a business that costs them more than they are making.

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.