Like many people, Entrepreneur Network partner Jeff Rose once has convinced himself it was a good idea to loan money to a family member. In reality, the situation can get messy when this close personal connection cannot return the investment. This does not mean Rose has given up on peer-to-peer lending, which is a helpful tool that can streamline the loan process.
It can very time-consuming to secure a loan in-person -- often you have to head over to your local bank or credit union, fill out a lot of paperwork, and then wait to see if it will give you a loan.
The benefit of loan tools like peer-to-peer lending can make you less beholden to the big banks, as well as be more accessible overall. Also, if you are on the lendor side of these tools, it can be a useful opportunity to become an investor in your peer's venture.
Click the video to learn more about Rose's experience with peer-to-peer lending and loaning money to family.
Source: GUEST WRITER - Jeff Rose, Certified Financial Planner, Author and Blogger
Theresa Todman, Managing Partner/CEO of B&M Financial Management Services, LLC . Theresa works with small business owners and entrepreneurs to assist them with financial management and creating organized systems and procedures. She specializes in bookkeeping, accounting, QuickBooks solutions, small business tax issues and consulting.
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