(2 min read) Today Greenspotconstruction.com blog explores things to consider before making a loan to a friend or family member, and explains KIVA, an innovative solution to lend money to loved ones AND tap into high repayment rates.
Sooner or later everyone is asked to make a loan to friends or family members. How can you tell if they will pay you back? Here are the TOP 3 ways:
1. A Solid Payback Plan
Asking for your money back is a drag! When the request comes with a plan to pay back borrowed funds that includes how much will be paid back, and how long it will take; this shows the borrower understands the importance of repayment, and is responsible communicator, a good sign.
A KIVA LOAN includes a payback plan developed by the largest micro-lending service in the world. The KIVA online portal makes getting paid back easy. Repayment begins in 30 days with Paypal. The SYSTEM does all the work! So you never have to ASK for repayment.
2. Aspirations for the Funds
We all want to help our friends and family succeed. When people ask for a loan and are forthcoming about the reason, that is a good start. When a small loan helps friends and family move closer to their goals; like a small business, they are more likely to pay you back as those aspirations are met.
KIVA is a non-profit that helps family businesses, like Green Spot Construction, LLC build excellent business credit. KIVA has distributed more than $709 million loans backed by deposits from friends, family, and business associates of their borrowers. Then, KIVA borrowers use the backing of their friends and the public platform, to get the word out to financial institutions and other lenders, who join in supporting and encouraging HIGH aspirations.
3. The Dollar Amount
When the loan amount your friend or family member asks for is small, it relieves some of the stress of saying yes. A small loan may be simpler to discuss with a spouse or financial advisor. And, just like a seed becomes a tree, granting a small loan request can make a BIG difference.
A KIVA loan request can be a minimum of $25. 1.5 million business owners, have had loans funded for their small business so far. Over the coming weeks Green Spot Construction, LLC is crowdfunding a 0% interest loan on Kiva. We will be sharing plans, aspirations, and asking our friends and family to participate.
Learn more about KIVA here, or sign up NOW as a Green Spot Construction lender. Your commitment with us a loan not a donation.
*Have a small business and interested in knowing more about ZERO PERCENT interest loans that are perfect to upgrade your storefront, or interior painting that will make your business pop! We would love to share information with small business owners about KIVA and how you can get connected.