Friends aren’t banks.
Your pal doesn’t issue checks or offer revolving lines of credit. Even if he’s loaded, your money issues aren’t his responsibility.

Covering a few bucks in a pub or restaurant every once in a while is an okay loan situation – as long as it’s not a ton of cash and you remember to cover her when necessary. However, if she’s had to pay for your lamb chops or all three cosmos, you either need to pay her back or treat her to a meal of equal value. Anyone with a chronic case of “forgot my wallet” isn’t absent-minded – he’s a mooch.

In circumstances where you actually need to borrow a substantial amount of capital, it’s best to approach the request respectfully. Be gracious and appreciative when asking, and understanding if your pal says no.

If she says yes, have a payback schedule worked out on paper so she can see you’re serious and professional. Agree to certain terms, like regular payment amount and date and whether or not there will be an interest rate. A verbal agreement and a handshake aren't enough – get your terms in writing. Both of you should sign the document and keep copies of it.

Once the deal is sealed, be sure to make your payments regularly and on time. If for some reason you can’t make a payment, or need to change the terms of the loan, talk about it. Be honest and upfront. Forgetting to make payments, avoiding the subject, and forcing your friend to constantly ask for her money is bad ju-ju and could spell trouble in Friendshipland.