Alan and Steiner is a debt collection company. In our line of work, we have seen many innocent clients fell into the same trap of lending money to people who either have capability or no intention of paying them back.
We hope that by with this article, you can prevent yourself or your close family members from falling into the same trap that many of our clients fell to.
People who borrow money (debtors) are broadly classified into 4 categories.
They need the money;
To buy or Pay for things or services they use These could be for daily necessities such as TV sets, refrigerators, laptops, rental of vehicles, go for holiday, get married etc. Most are able to payback as long as they have a job, not incurred too much debt from other friends and have a family here.
For Gambling Gamblers always believe their next bet will be the next big one. Hoping that once lady luck is on their side, they will be able to generate more cash by gambling further and returning you the debts they owe.
Unfortunately, most people will not tell you that they need your money to feed their gambling addiction. Lending money to gamblers is a big NO. If you wish to go against this advice, we recommend that you do some background search on the people that you want to lend money to.
Most gamblers are aware that no-one will give them money to feed their gambling habits. Instead, they will give you other emotional reasons as to why they need the money. For Example, they will claim to have medical problems or that their parents are facing financial difficulty etc. If they say, they have some medical problems, ask to see the doctors letter, if they parents is facing financial difficulty, ask to speak to their parents. Remember, it is your money. It is better to be careful at this stage than to regret later.
For Business Loans Business people are always in need of cash to grow or expand their business or cover some shortfall due to slowdown in business activity. Unfortunately not all businessman are created equal and not all business ideas will make it through. We all wish to invest in the next Google.
If you lend to the wrong person, he/she may never be able to pay you back. So make sure you ask for the type of business venture they are in and how to plan to use the money before lending them. If you are planning to lend them over 30% of your savings, make yourself to be part of company financial decisions or be part of the check signatories. Especially if this is a startup.
It is common for us to see people who are completely left out of all the major financial decisions of the company they lend money to. Often claiming to trust the party that they lend the money to. Unfortunately, on many occasions, the money is often misused. Eventually the same person will ask you for more money promising that this time, it will help him turn around a profit and protect your previous loan or you will have to write-off your previous loan.
If you are planning to lend to a business person, please make sure, (a) his name in found is acra (he is listed as one of the directors of the company) (b) he is not a bankruptcy (c) get the company to sign an agreement with you and have the directors sign as guarantor. This will allow you to take action against both the company and the director(s) should they fail to pay up.
If they are not willing, then, this will be the best time to politely turn down the loan offer.
Promise of High Returns There are always those who seems to have that some special insider information or knowledge that they can generate huge profit from your money. They promise you yields of as high as 20% to 50% for your funds.
Most of the time, you will have no clue as to what they are talking about (apart from them looking very confident and smart). Sometimes a deal too good to be good is really too good to be true. Avoiding them is a safer bet. Afterall if the yield is so good, why don't they just borrow from the bank and triple that cash right. Since it is going to be a sure win.
We hope that by with this article, you can now prevent yourself or your friends and family members from falling into the same trap that many of our clients fell to.
Feel free to share this article. Remember, it is better to keep your money in the bank and receive a guaranteed miserable 1% interest on your capital than to lend to someone and end up paying 30% to a debt collector to recover your hard-earn money.
If you know of someone who needs help to recover their loan. We will be happy to assist. Please call or whatsapp Alan & Steiner Debt Recovery at 91723358.