I've always believed that life is about taking chances, but some chances come with more significant stakes than others. One such risk I took was loaning $10,000 to a close friend and business partner in 2016. This is the story of that risky loan.
My friend and I had been working together in network marketing with Usana since 2012. By 2016, we had set our sights on hitting the rank of Gold Director. The journey to achieving this lofty goal required more financial input than our recruitment could provide. This situation led to my decision to loan my friend the needed amount to boost our business.
There were no written agreements, no collateral - just trust and our shared vision. After all, we had a longstanding relationship and mutual respect. Unfortunately, our venture encountered difficulties. The expected return on investment was not as we'd hoped, leading to my friend's inability to pay back the cash as initially agreed. An air of embarrassment hung over our communications through facebook messenger, and for a while, my messages went unanswered.
Despite this setback, I remained understanding and hopeful. I recognized that business, just like life, has its ups and downs. Instead of cash repayment, we settled the debt with Usana products, which my wife and I consumed and sold personally.
Reflecting on this experience, I've realized that the strength of relationships is sometimes tested by financial matters. Although things didn't go as planned, I don't harbor any regrets. I value understanding and empathy in my relationships, and this experience has only deepened these virtues.
I learned some important lessons from this experience, lessons I'd like to pass on to anyone considering giving a risky loan:
Understand the risks: All businesses come with inherent risks, including the risk of failure. Before loaning money, especially in a business context, make sure you fully understand these risks.
Be ready for unexpected problems: Even the most reliable individuals can face unforeseen challenges that could impact their ability to repay a loan.
Only loan what you can afford to lose: No one is ever forced to give a loan. Before making the decision, ensure that you're prepared for all possible outcomes, including the prospect of losing the loaned amount.
Ultimately, my journey with risky loans has been enlightening, punctuated with both valuable lessons and profound personal growth. I hope my story provides some insights to anyone considering taking a similar risk.
P.S. I don't blame anyone for my experience but I am treating it as a valuable lesson that we can learn from.
