Private lending refers to the act of financing between natural persons, legal persons and other organizations, rather than between financial institutions engaged in loan business and their branches established with the approval of financial supervision departments.
In real life, there are a large number of private loans, which have caused many disputes. Some private lending did not sign any contracts; Some signed a contract, but the terms were not detailed enough, and even lost their function because the contract was invalid. So, what should we pay attention to in private lending? Here, I would like to introduce some matters needing attention in private lending:
First, it is flexible in handling disputes.
"Litigation" refers to a simple legal procedure, that is, a supervision procedure. 199 1 The revised Civil Procedure Law added this procedure. If the debtor has no objection within the specified time, the payment order will take legal effect. If the debtor fails to perform the repayment obligation, the court may enforce it.
Second, the loan procedures in private lending must be complete.
As the saying goes, "brothers should settle accounts clearly", and even a good relationship should also perform basic procedures to avoid possible disputes in the future. First, it is best to take the form of a situation, where the borrower sets up an iou and gives it to the creditor for safekeeping. If it is really necessary to take an oral approach, it is best to invite more than two unrelated people to testify; Two, IOUs should generally specify the names of both parties, the amount of the loan (in words and figures), the term, interest, repayment time and other basic terms; Third, if the same loan needs to be postponed, it is unnecessary to establish a new IOU; Fourth, if a husband and wife or family lend money to * * * in the name of one person, they must indicate the purpose and sign the names of both husband and wife and family members.
Third, be good at using safeguard clauses to reduce risks.
If the loan amount is large and the borrower's repayment ability or credit is in doubt, it is best to use the borrower's property as collateral, such as real estate, securities and vehicles. (The above can only take effect after the registration of relevant departments), or ask a third party to make a guarantee. This avoids the possibility that the borrower is unable to repay the debt and the creditor "loses all his money".