Loaning Money

Never loan money to any person or business without collateral. Collateral is physical property that secures payment. If the borrower doesn't pay, you can take the collateral back and sell it to cover the debt owed. If the borrower goes bankrupt, which is very common these days, the creditor/lender gets the collateral back. Loans should always be signed for by the individual, not a corporation. The Corporation may not have any assets, so use the individual's signature.