Re: Loans too risky?

Loaning money for example is going to cost you more money so in fact you have to pay for money. But you should only take a loan for something important that you need in live. Do not take a loan if you do not have a good reason to do so.

you may be able to borrow from your friend or relative so it will not be charged.
yes you are right, borrow when we have something that is really important. or borrow when we were able to return it. because otherwise, it would be a risk.

I had a friend mine and he asked me for help him, i had lended the money and he said would repay on the same week, the result of those were 1 year to repay and just repaid me 80% soo if you do wanna to loose a friend lend money to him or her be sure that it might lead into those. Its better to lend to a random person then a friend.

Mixing businesses and friends is always a bad idea, because it will happen what you mentioned in your example, some people will abuse your trust in them and will not fell obligated to pay you back.

I also always keep away my friends from my business and when come to them while in business I deal them the same as my other clients so that I will not have to suffer the lose because of sending for them and with that they will not know the secretes of me.

The basic principle in business is that "it should be separate and distinct from the owner" that means you need to separate it from you and your friends if you cannot control them. In lending business, it is easy to loan out but the hardest way is when you collect and since you are extending loan to your friends, it is presume that sometimes you skip some of the necessary requirement to evaluate his capacity to pay which would lead to failure of your business.