Benefits of financing from family, friends
Borrowing money from someone in your family or friend circle is neither new nor uncommon. However, when done with too much casualness, it can harbor the kind of mismatched expectations that may affect your connection. That doesn’t mean you should not be financing from family or friends.
To give you some clarity, below are the perks of family-friend loans that will help you make a well-informed decision. Please have a look:
Easy Approach to Raise Capital
One of the reasons why you should borrow from your relatives or friends is that you don’t have to jump through the same financial hurdles to get your loan approved. No need to draft a pitch or prepare a speech. All you need is to make them believe in your idea.
Borrowers with a poor credit score may struggle to secure a bank loan, but financing from family and friends is a great alternative to traditional financing. It is by far the easiest way to raise the capital you need.
Low/No Interest Rate
When you seek funds from banks or investors, you are always under pressure to work harder and reach the set level of interest. However, borrowing from friends and family means there will be low or no interest.
So, you don’t have to worry about accruing interest on the loan, saving you a significant amount of money in the long run. You can work with peace of mind, which comes out as the biggest benefit of using friends and family funding.
Flexible Terms and Timelines
Another benefit of funding from people you know is that repayment terms can be more flexible than with traditional bank loans. This is helpful if you need some extra time to start making regular loan payments. However, it is not necessary to finance without any agreement.
Personalized Service
When you borrow from friends, you can expect more personalized services than you would from a traditional lender, such as banks. This would make the process of getting a loan and repaying it less stressful. No need to make any one-time financial projections. Whenever you are in a good position to raise enough money, you can return the loan to them. Simple, isn’t it?
Summing Up
Your near and dear ones will always be there to not only share your happiness, but also to help you during crucial times. With friends and family financing, you can raise the money to achieve a new milestone or fulfill your financial needs. While there are some drawbacks too, such as social awkwardness and lack of clarity, you can eliminate such issues with the help of Janji-Ku app.
To learn more about the app, feel free to contact us.