"Neither a borrower or lender be" might be a rule followed in Shakespeare's Hamlet but in real life it is often hard to avoid. Most people will be either loaning or borrowing items or money from time to time.
But when the borrowed items are not returned or money not paid back it can lead to more than a headache for those involved. Research shows one in five people have loaned money to a friend but one in three say they have faced a wait of over a year to get back their cash which can lead to tough times in relationships.
According to Google trend data, the search term, "how to ask for money owed" has received a 216.67% uplift in the past month alone. Here, financial expert Georgia Galloway at Finbri reveals how to ask for the money that you loaned to a friend back and what to consider before you lend.
You Vs Our
Whether it’s a small or large amount that is owed, the borrower is likely to feel a sense of embarrassment that they have not yet paid their debt. Avoid accusatory language and send a short but sweet reminder, whether through text or in person.
Swap statements such as, "you owe me money" for the likes of, "I just wanted to check in about our debt". Using "our" over "you", will ensure that they recipient doesn’t feel the need to be defensive or that they are about to engage in confrontation.
Flexi repayments
If you are aware that your friend is in a sticky situation financially, instead of asking for the money back as a whole, suggest a payment plan. Such a proposal opens a wider conversation and a safe space for your friend to talk about their worries and voice any concerns that they have with regards to paying you back.
No grey areas
It’s important to be direct when asking for money to be returned. What may be obvious to you may not be obvious to the borrower.
Ensure that you are direct and make it clear that you expect the cash to be returned and not a product that equates to the equivalent amount. For instance, the borrower may believe that they have paid their debt in full after paying for social outings, taxis etc. Ensure that you are clear and concise about what you consider to be a debt paid in full.
Before you lend:
Agree a return date. This will avoid any awkward chasing in the future.
Its all relative. Many feel embarrassed to ask for their money to be returned if they feel that it’s a small amount. Remember, what is a small amount to one person may not be a small amount to another, you are always entitled to ask for what is owed.
If a friend requests that you lend money from them, chances are that they have also told you what they need the money for. Of course, what your friends spend their money on is none of your business however, if you are lending them money, you must be satisfied with what they are spending it on. This will avoid any resentment building if there is a delay in them returning it.
If you haven’t got the money to lose, then you may not have it to lend. Ultimately, no matter how close your relationship with your friend is, the money may never be returned. If you do not have the money to lose, then it may be a bad idea lending it.
Remember, if they were comfortable to ask, you can feel comfortable to ask for it back.
