Most loans between friends fall apart for the same reason: nothing was written down. Six months later, one person remembers "I'll pay you back soon" and the other remembers a specific date. The friendship pays the price.
A short written agreement fixes this — not because you'll ever sue your friend, but because a clear record means you never have to argue about what was agreed. It also makes the ask less awkward: the terms did the talking, not you.
What a friend-loan agreement should cover
- Who and how much — the lender, the borrower, and the exact amount.
- Repayment — a single date, or instalments with dates and amounts.
- Interest — usually none between friends; say so explicitly if there's none.
- What happens if life happens — a grace period, or how you'll renegotiate if money's tight.
Keeping it plain-English means you both actually read it — which is the whole point.
How it works here
Describe the loan in a sentence, review the plain-English terms together, and you both e-sign. You each keep a signed copy. No lawyer, no legalese, no "are we really doing contracts now?" moment — it takes about a minute.