Everything You Need to Know About Borrowing Money on Receipt?

Before you properly issue a receipt for the loan of money from a private person, it is important to discuss in advance all the conditions of cooperation. First of all, it concerns the evidence and guarantees from the borrower. As a rule, in most cases, in addition to a receipt for receiving money under a loan agreement, it is required to provide collateral property, the cost of which will cover all losses in case of non-payment of funds. Mortgage property often:

  • movable property;
  • jewelry;
  • securities and documents.

Also the borrower and from a private investor will need to provide reliable information about themselves, including passport data, as well as other information, which is recorded in the receipt for money at interest. It should be borne in mind that interest rates on such loans are much higher than those offered in banks and lending companies.

What are the advantages of loans on a receipt?

Despite the sufficient development of the credit industry, and a large number of offers from banks and lending companies, many still prefer to borrow money on receipt. What are the features and advantages of such cooperation? Let’s try to figure it out:

The minimum package of documents. The borrower provides only passport data, and a receipt for the money borrowed.

  • The borrower may request any amount for any term.
  • Credit history and the availability of employment are not interesting for a private lender. They ask for pledge, which will be a money back guarantee.
  • Making a receipt is possible, both with a notarization and without it. Subject to proper preparation, the document is equally valid.

This and other criteria most often become decisive when choosing a source of credit in difficult situations in which a person finds himself. Agree, it is easier to find such a private lender, sign a receipt and get money in cash. This saves time and effort.

What is a receipt for money in debt?

Before borrowing money from an outsider, it is important to issue a receipt. An example of loan receipts today is easy to find on the Internet or at a notary, and enter your data and specify the conditions agreed with the private lender. All your words, decisions and conditions that were discussed with the individual giving the money should be written on paper. This document will further help protect the interests of each of the parties in the event of a trial or other force majeure situations.

How to make a receipt for a loan of money, we will tell later. Now let’s discuss what is a receipt for a loan of money? The definition of such a receipt is provided in the laws of the Philippines, and it sounds like this: a receipt is a documentary confirmation of the transfer by the lender and by the borrower of a certain amount of money. That is, the receipt can be considered confirmation of the signing of the loan agreement. Of course, it’s not possible to call the receipt a contract, due to the large number of differences in the text and the drafting principle, but it is a confirmation that such a contract has been concluded.

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