Friends Don't Let Friends Borrow Money

I recently came across the company Virgin Money. They act as the middleman between friends who want to borrow/loan money. The goal is the make the contract clear and legal to keep your friendships friendly. All money goes through Virgin and they even help navigate complicated usury laws. Although using this company is probably better than a deal on the back of a napkin, it's still a loan and the borrower can still default. This is why I think it isn't good for friends or family to loan each other money. That is what banks are for. If the professionals don't think your loved one can pay the money back, it's likely they're better off not taking it. That said, it doesn't mean we shouldn't be willing to give our money away. My wife and I have always agreed that if someone we love asks us for a reasonable loan, we would give them the money as a gift without any expectations of repayment. If we aren't comfortable giving it away, then we wouldn't. If we money comes back great. If not, we'd be glad to have helped.