Even the best of us experience financial problems at some point. One of the most stress-free borrowing experiences is asking for money from your relatives or friends. However, the financial side seems to be the only one that wins.

When it comes to practice, it may be awkward and confusing to ask someone for money. The same applies to situations when you’re the one who lends it. This brings us to the point that whether you need to borrow money or ask for your own money back, there are certain unspoken rules you need to stick to.

The best way to ask for money is by being polite. Following the tips below will help you maintain a strong relationship with the person you lend money to or borrow it from.

How to Ask for Money Politely if You’re a Borrower?

When you’re going to borrow money, you may feel awkward even imagining the moment. Therefore, many people end up getting a loan from financial institutions. This results in paying high interest and often affects your credit score. Thus, you need to consider more affordable options first and seek help from a family member or friend. Below you can find practical tips on asking for money as a borrower.

Be Honest

Speak frankly, and don’t make a person guess. You shouldn’t expect your loved one to recognise your hints, read the signals, and offer help themself. Don’t beat around the bush. Be honest about your current financial situation. Clearly state your position: you need money, and you are going to spend it on this and that. Any lie can work against you after it is revealed. You probably don’t want to damage your strong relationship with a person or be branded as an unreliable borrower.

Ask for Money Politely

A person may be more willing to lend you money if you ask for it in a respectful manner. Marsha Welsh, a personal finance expert of 1F Cash Advance, has provided some useful tips on how to politely ask for money in her recent article. Her point is that politeness is a virtue. “Never forget that a person does you a favour and is not obliged to agree. Keep calm, and don’t forget to use “Thank you” and “Please.” – Marsha advises.

Have a Clear Plan for Money

A person lending you money will probably want to know how you’re going to use it. Thus, you need to outline your loan purpose and let a person decide whether they find it reasonable. To improve your chance of getting a positive decision, make sure to have a clear repayment plan and share it with a potential lender. People are more willing to give you money if they feel confident about getting the sum back.

Make a Written Agreement

Even if your family member or close friend trusts you completely, offer them to put the agreement in writing. This will show that you take it seriously and are not going to violate the agreed-upon loan terms. Additionally, the written loan agreement will help you clearly outline the borrowed amount, interest rate, if any, repayment date, and responsibilities of all parties involved. This will help avoid misunderstandings in the future.

Choose the Right Time

The moment you choose to ask for a favor plays an important role. If a person is having a hard time, is annoyed, in a hurry, or feels bad, this is definitely not the best time to ask for cash. In this case, the chance of getting rejected increases. Try to ask for a loan in a calm environment. Make sure your potential lender is not worried about anything and is in a stable financial situation.

Ask for Money in Person

It’s easier to write a text message, but your chances for success will be much higher if you ask for money face-to-face. When you talk to a person one-on-one, they can see your facial expression and emotions and get a better understanding of your current situation. This is also a psychological point: we are often more supportive of people when we communicate with them in person. Of course, provided that both sides are polite and respect each other.

Take Care of Your Reputation in Advance

Prioritize repaying all your debts on time. It should be the most important thing, along with your housing and other mandatory payments. To become a person to whom other people are willing to lend money, you need to be in good standing. Reputation is earned for a long time but can be destroyed by just one mistake. In order for people to lend you money, they need to know that they will be paid back on the due date.

Be Ready to Get Refuse

Having a plan B is always important. Even if you’re in a difficult financial situation, your family members or friends may not be able to lend you money. More than that, they don’t have to do it, no matter how strong your relationship is. Therefore, take care about what you will do if your loved one can’t help you solve the problem.

Consider who else you can turn to, contact your bank, or search for online lenders in your area in advance. And don’t get angry. Lending money is always a personal choice. Your loved one may struggle with unexpected expenses or have other financial priorities besides giving the money to you.

How to Ask Someone for Money They Owe You?

Below are a few tips on how to ask for money back politely.

Remember That Communication Is The Key

A conversation about finances can be uncomfortable, but keep in mind that you shouldn’t feel bad when you ask for your own money back. Practice will help you become more confident. Try not to force the debtor, especially if the due date hasn’t yet come. Ask about whether your assistance helped them improve their financial situation. Then, you can inquire about whether they are still on for the due date.

First, it will show that you are interested in getting the money back and still need it. Second, it will help you identify problems at an early stage. If the debtor can’t repay the debt on time, consider alternative options. Maybe you can offer an affordable payment plan to let your friend pay the money back over some time. It’s still better than being left with nothing.

Don’t Be Afraid to Remind

If an individual has delayed the debt repayment, don’t hesitate to remind them of the agreements. Perhaps, the person rushed off their feet and simply forgot about the repayment terms. First, you can write a text message or send an email. If that doesn’t work, call or make an appointment. Make it clear that you have plans for the money and need it on time.

Set Clear Repayment Terms

If you haven’t set clear repayment deadlines, it may be harder for you to get your money back. The borrower simply will not understand the point they delay the repayment. When the deadlines are clear and agreed in advance, it will be easier for the debtor to stick to them. It will also allow you to plan your budget, provided that the individual will repay the money timely. If not, it will be easier for you to ask it back, referring to the agreement.

Be Strict But Not Conflict

Even when you ask for money politely, you need to make it obvious that you’re serious about the situation. Be calm about your request but make your position very clear. If the previous conditions have been violated, set the new ones and formalize them in a written form. Set a specific date on which you expect to get the funds back. This way, the borrower will understand that the situation is serious and will be able to prioritize repaying your debt.

Accept That You May Not Get The Money Back

Unfortunately, even our loved ones can sometimes let us down. People are unpredictable. In order not to get disappointed, you’d better prepare for the worst. Make it a rule to lend only the amount that you are ready to lose. Thus, even if an individual doesn’t return the debt to you, this will not hit you and your wallet. Although the relationship will be damaged, at least you will know that this person is not worth dealing with when it comes to finances.

The Bottom Line

Whether you are a borrower or a lender, politeness is the key when it comes to asking for money. Although people often feel uncomfortable when they speak about finances, you shouldn’t be afraid to turn to your loved ones when hard times have come. And you certainly shouldn’t feel wrong when you ask someone to pay you money back. To make it easier, use the tips that we’ve mentioned in the article.

Try to get the agreement in writing and make it a rule to always be polite and honest. Do not let financial disagreements ruin your relationship with your loved ones without a conversation. Try to always stick to the agreed-upon terms and learn to compromise.