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If the loan goes bad for some reason, can you deal your strained relationship or no relationship the new borrower? If not you may wish for to the lumps immediately and say "No". All of your ask yourself whether or not you can stay out on the borrower's business even in case the loan is current. The obligations in the lender and borrower should be spelled out in the loan agreement. For example, your current products lend your friend money to open a coffee shop, permit you give the right to dictate what type of of coffee to sell and at what expenditure.

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