Money -Sometimes people would choose to invest money in others. This means someone would take the risk of investing his or her money in other persons like friends and or borrowers for a profit.
This is not a rare practice because even banks, the world over, do the same though in a different style unlike when individuals are investing in one another.
Banks would ask for collateral what sometimes is referred to as securities meant to minimize risks for lenders while, on the other hand, persons-to-person only considers signatures, trust and guarantors.
There are certain measures, nonetheless, which one has to observe while doing this to avoid losing money in this risky informal business transactions.
Among many other ways, one could decide to lend only surplus money or focus on inventing in partnership business which should however be promising. It it illogical to invest in business which are yet to be tested or which are just starting.
Further, if you are investing in individuals, make sure you look keenly at the risks as well as the positive sides before parting with your hard-earned cash.
Remember that collecting debts from friends and family members could be difficult than avoiding to lend them anything completely. You should always choose the easiest path.
