Bring a created deal
Create a simple composed contract with all the borrower expressing the way you like to speak, how frequently you should get posts, and also in just what situations they ought to email your. This implies you’re going to be ready in case you have to start paying the loan back once again.
Restrict your debts
Guarantee that the promise is limited compared to that specific financing which the debtor cannot use your guarantee for other financing such as for instance mortgage loans or credit card debt. You might also have to offer a “secured guarantee” such as for instance a car or discount. Be certain that not to ever include any items which may be valued at above the borrowed funds, like a house, like.
Keep all paperwork
Whenever agreeing to-be a guarantor, you’ll obtain a duplicate of this contract, the debtor’s payment routine and also the assurance deal.