Loan Agreements & Lending Money to Family or Friends
Lending money to someone you know, whether a family member, friend or partner, often begins informally and with good intentions. Issues usually arise later when there is no clear agreement about repayment or whether the money was intended to be a loan or a gift.
We advise clients on how to properly document private lending arrangements so expectations are clear from the outset and enforceable if required. Our focus is on creating certainty and reducing the risk of dispute.
When you should seek advice
You should seek legal advice if you are
Lending money to a family member or friend
Assisting someone with a property purchase
Providing financial support to a partner
Relying on a verbal agreement only
Unsure whether money is a loan or a gift
Experiencing issues with repayment
Most disputes arise not because money was lent, but because the arrangement was never properly documented.
Loan agreements for private arrangements
We prepare loan agreements that reflect the specific circumstances of each arrangement rather than relying on generic templates.
This can include
Personal loans between individuals
Family loans and informal financial assistance
Property related contributions
Secured and unsecured lending arrangements
Agreed repayment terms and timeframes
Interest provisions where appropriate
The aim is to provide clarity for both parties and reduce the risk of future dispute.
Lending money to family or friends
Family and informal loans are often where misunderstandings occur because expectations are assumed rather than recorded.
We assist with
Formalising family loans in writing
Clarifying whether funds are a loan or a gift
Documenting contributions to property purchases
Protecting financial contributions if relationships break down
Resolving uncertainty before it becomes a dispute
Even in close relationships, clarity in writing helps prevent conflict later.
Reviewing existing loan arrangements
If money has already been lent or an informal arrangement exists, we can review the situation and provide advice on your position.
This includes
Reviewing any written or informal arrangements
Assessing enforceability
Identifying risks
Advising on formalising the arrangement
Securing a loan
Depending on the circumstances, it may be appropriate to put additional protections in place.
We can advise on
Securing loans against property or other assets
Structuring repayment obligations
Protecting repayment rights
Reducing risk in the event of dispute
Loans involving companies
We also advise on loans between individuals and companies including arrangements involving directors or shareholders where personal and business finances overlap.
These arrangements are often informal and benefit from proper documentation to avoid future uncertainty.
If repayment is not made
If a loan is not repaid, we can assist with practical steps to resolve the matter.
This includes
Letters of demand
Negotiation and settlement discussions
Advice on recovery options
Further legal action if required
We always aim to resolve matters efficiently before escalation.
Why documentation matters
Without a written agreement it can be difficult to establish
That the money was a loan
What the repayment terms were
Whether interest was agreed
Whether the funds were intended as a gift
Clear documentation reduces uncertainty and protects both parties.
Our approach
With a background in banking and finance as well as legal practice, we understand how private financial arrangements operate in practice.
We focus on ensuring agreements are
Clear and practical
Properly documented
Legally enforceable
Tailored to the circumstances
The goal is certainty and risk reduction, not unnecessary complexity.
Related services
This area often overlaps with
Asset Protection and Financial Agreements
Family Law and Property Settlements
Wills and Estate Planning
We provide integrated advice where financial arrangements form part of a broader personal or family structure.
Contact us
If you are considering lending money or need advice about an existing arrangement, contact Alpine Legal for clear and practical advice tailored to your situation.