Making loans work

Many private that don’t work out well do so because of a mismatch between the expectations of the borrower and lender. Many don't work out because of inadequate or no documentation. Also, when many loans become due the borrower often expects a lump sum payment which can sometimes be difficult to make.

A good way to avoid many of these problems is to document the loan with a Promissory Note. In fact, this is one of the best things you can do. The document will also come in handy to show the ATO (Australian Taxation Office) and your accountant.

Another way is to stick to a regular monthly payment plan so that servicing the loan is more affordable and eliminates most of the stress between the lender and borrower.

Fosik’s ready-made Promissory Note and payment schedule will set you on a firm path for a successful private loan.