Many people fall on hard times and during those times, they may need to rely on their friends to help them through their ordeal. Friends can lend emotional support but they may also be able to lend financial support. Although borrowing money can ruin a friendship if it is not done properly, it can also show you just how far your friend are willing to go to help you out during a crisis. Borrowing money from your friends is something that you probably shouldn’t make a habit of, but if you need to do so, it is important to go about it the right way.
Evaluate your financial needs and decide how much money you will need. Exhaust all other possible avenues and only ask your friend for the remaining balance that you need. The less you need to ask for, the more willing your friend may be to lend it to you. Furthermore, you will be able to pay it back quicker and it will have less of an effect on your friendship.
Write up a legal contract that will show your friend that you are serious about fulfilling your obligations and will provide some security should you fail to meet your obligation. You need to clearly state the amount of the loan and how much you intend to pay back. You should also include a schedule or date for repayment. Make sure you both sign the contract and make a copy for yourself.
Set up a time to meet your friend in person. Lending money to a friend is a big favor and asking for this favor is not something that you want to do over the phone or in an e-mail. Inform your friend that you want to talk about something very important. Speak in a calm, even tone and explain your financial situation and why you need the money.
Avoid using guilt to coerce your friend to say "yes". This is not the time to recall all of the favors you have granted in the past. Furthermore, if your friend offers the loan because of guilt and not because he or she wanted to do so, it may conjure up resentment towards you that is not easy to resolve.
Be prepared for the worst answer and have a graceful response ready. Most of all, don’t be resentful if your friend says "no". It is not easy to lend money to a friend and your friend may not want to go against his/her better judgment. Regardless of the reasons for refusal, remember that this situation is not your friend's fault and you should not shun the friend because of it.