A Flight Path For Lenders

Tilly Tanga

Tilly Tanga

Published on: 19 August, 2021

Updated: 10 March, 2023


How to loan someone money, maintain your relationship, and get paid back.

When it comes to making a loan with friends or family, there are two extremely important components of a loan that Lenders care about:

  1. The likelihood that the money being given out as a loan will be paid back in full.
  2. The hope of maintaining a good standing relationship with a Borrower after a loan is complete.

When thought of together, these two intangibles are powerful forces within the loan process and often work in conjunction with each other to influence the numerous outcomes of a given loan.

Many of us are aware of this reality, and have even run into a scenario like: your best friend didn’t repay you back a large sum of money which ultimately ended your friendship. Or, in this same experience, the reverse is also true — a relationship falls apart while your significant other is indebted to you, so the chances of you seeing your money again are slim at best. Oftentimes, because of these two factors, lenders who want to support and help their loved ones are left taking on a great level of risk, both financially and relationally.

Now what if I told you there are ways to combat, and maybe even prevent these struggles…

According to a Bankrate 2019 survey, statistics show that nearly 60% of Americans are benevolent lenders when asked to be. When it comes to helping out a friend or family member financially, 3 out of 5 people will sacrifice their own well being to help their loved ones in need. And as you might guess, about 35% of those compassionate supporters were negatively harmed in some way, albeit financial or relational. However, interestingly enough, a caveat exists within this world of lending and borrowing. An additional 35% of surveyors report having experienced no harm at all when it came to making a loan with someone they trust. Very few statistics exist as to what goes into a loan that yields only positive results, but when we think about human nature and an individual’s relationship with money, we can be sure of a couple of things.

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Achieving a goal is more attainable when people are held accountable. Analogous to the world of interpersonal loans, when building a new business, entrepreneurs are 65% more likely to succeed in meeting aspirations for themselves when they designate a second or third party dedicated to holding them accountable to their own commitments. In thinking about your relationships and life experiences, we can all recall a time where we accomplished a great achievement and did so because we had a peer, organization, friend, family, or neighbor to hold us accountable over time. In the same way that these moments in our lives were made possible because of an increased sense of accountability, this phenomenon can also translate over to and influence the world of loans when dealing with people you trust.


Aside from the time and effort put into lending money to a loved one, what is the overall cost of making this kind of loan? Expenses to consider might include, legal fees and bookkeeping. Considering the time it might take you to educate yourself on the best lending practices or even the potential tax pitfalls of a new loan, you will have invested a significant amount of your well being into helping out your loved one in their time of need. Reducing all of these costs, whether directly or indirectly, is paramount to increasing the likelihood a loan being repaid. The ideal reality for the world of lending would include a free platform for Lenders to track their money given out, an easy way for Lenders to generate a promissory note legally without incurring the costs of formal legal counsel, and a readily accessible source of information on how to best navigate the entire loan process. By creating this ecosystem of tools and resources, the overall cost of making a loan is greatly reduced and as a result of this reality, all parties involved can focus more on maintaining a healthy relationship and repaying their loan on time.

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Even though it may seem impossible to create and manage a happy, healthy, and simple loan with your friends and family, there is light at the end of the tunnel. At Pigeon, our easy-to-use online platform handles all of the little logistics that irritate and ultimately hinder relationships and the loan process as a whole. Our ecosystem, handles payments, reminders & notifications, complicated bank transfers, and the creation of contracts. At little to no cost at all to the Lender, the worry regarding whether or not their loved one will remember their next payment installment is nothing more than a thing of the past. Using Pigeon can help hold Borrowers accountable for their responsibilities, so Lenders don’t have to text, double text, or even call a forgetful family member about any money still owed. The key to navigating a loan successfully lies within the logistics, and using Pigeon provides lenders with the most comprehensive solution to the pains of an interpersonal loan.

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By adding an element of accountability and reducing the indirect and direct costs of making a loan with someone you trust, we believe only good can come out of your next act of financial kindness. So whether you just want to help out your friends, or whether you want to help someone grow their business, structuring and managing your loans through Pigeon is a no brainer. Lenders all over the world are joining our platform each and every day, so why not you?

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About the author

About the Author

Tilly Tanga

Director of Operations

Tilly Tanga is the Director of Operations at Pigeon. Having graduated from Bowdoin College and spent numerous years in the healthcare field helping others, she has combined her unique skill set to help support the broader Pigeon community through education and evangelism. An expert in community engagement, Tilly is the voice of The Carrier, a newsletter series by Pigeon. She writes about all the latest developments, successes, and news happening within the Pigeon community every month.