13 Good Reasons to Borrow Money from Friends

Last Updated on August 9, 2023 by Jerome Donovan

You’re in a tricky spot financially, and you haven’t won the lottery to cover your expenses. Your cash is running low, your credit score isn’t high enough, and the bills are piling up. That means you need good reasons to borrow money from friends.


You know that your friends and family might have some extra money they could lend you. It’s not something you take lightly, though. You might feel proud like anyone would, and asking those close to you for money isn’t easy. It’s more than just asking for help; you want to approach it with dignity.

You fully plan to pay back what you borrow, and you realize that you’ll need to explain why you need the money in the first place. It’s about preserving your long-term relationship with them, not just getting a quick fix for your financial woes.


So, you’re gearing up to talk to them, making sure you have solid reasons for needing to borrow the money. That way, you can approach this delicate situation with clarity and respect, making it clear it’s not just a handout you’re after.

Key Takeaway
  • Friends may lend money quickly for emergencies like sudden illness or car breakdown.
  • Friends might invest in your business if they believe in your vision.
  • Borrowing from friends for education can offer more favorable terms and flexibility.
  • Friends might lend money at low or no interest, avoiding high-interest debt like credit cards.

Good Reasons to Borrow Money from Friends

good reasons to borrow money from friends

Reason 1. Emergency Situations

Emergencies can happen at any time. Let’s say a family member suddenly falls ill, and you need money for medical bills.

Or maybe your car breaks down, and you must fix it immediately to get to work.


In situations like these, friends may be willing to lend you money quickly. Unlike banks or lending institutions, friends often don’t require lots of paperwork or time for approval. They understand your situation and are typically willing to help without delay.

Reason 2. Starting a Small Business

Many people dream of starting their own businesses but lack the funds to do so. Banks might be hesitant to lend money, especially if it’s a new, unproven business idea.

However, this can make good reasons to borrow money from friends who believe in your vision. They might be more willing to invest in your business by lending you money.

Moreover, they know you personally and may have more confidence in your ability to succeed. This support can be a lifeline for budding entrepreneurs.

Reason 3. Education

Education is an investment in the future, but it often comes with a high price tag.

Scholarships and financial aid might not cover all the costs, and loans from financial institutions can carry high-interest rates.

Therefore, borrowing money to pay for education can be a good reason to borrow from friends to finance your schooling. Your friends are likely to offer more favorable terms and even be willing to wait for repayment until after you’ve completed your studies.

Reason 4. Avoid High-Interest Debt

Credit cards and payday loans often come with very high-interest rates. So, if you need to borrow money for a short period, these options can be expensive.

Your friends, on the other hand, might lend you money without interest or with a very low-interest rate. This will prevent you from getting into a cycle of high-interest debt.

However, be transparent and honest about your situation. You also need a repayment plan to help sustain the relationship.

Reason 5. Unexpected Job Loss

If you lost a job unexpectedly, that can come as a big shock, and it may take time to find new employment.

During this period, bills and daily expenses still need to be paid. Friends might step in to lend money to help cover these costs while you’re searching for a new job. This form of support can relieve immediate financial stress and allow you to focus on finding the right employment opportunity.

The trend of friends supporting each other during career transitions reflects a deeper understanding of the uncertainties in today’s job market.

Reason 6. Natural Disasters

Natural disasters like hurricanes, floods, or earthquakes can be good reasons to borrow money from friends. Obviously, these can cause significant property damage. Your insurance, on the other hand, might not cover everything, and government aid can take time.

Friends may be willing to lend money to help with immediate repairs, temporary housing, or essential supplies. This kind of financial support in the wake of a disaster is part of a growing trend where communities come together to assist one another in times of need.

Reason 7. Home Repairs or Improvements

Sometimes, your home might need urgent repairs, like a leaky roof or a broken heating system.

Or perhaps you want to make improvements, like adding insulation to save energy. Borrowing money from friends can be a quick and low-interest way to fund these projects.

Your friends understand the urgency or the long-term value of these improvements. This trend of turning to friends for home-related financing is seen especially among those who prefer to avoid complex bank loans or don’t have access to other forms of credit.

Reason 8. Travel for Important Life Events

If life brings events like weddings, funerals, or family reunions, these make up good reasons to borrow money from friends. Sometimes, these events might be far away, and you need to travel. If you don’t have the funds readily available, friends may be willing to lend you the money. It also allows you to be present at significant moments without financial strain.

Reason 9. Supporting a Community or Charity Project

Are you passionate about a community or charity project but don’t have the funds? Friends can lend you money! Whether it’s building a community garden, supporting a local animal shelter, or organizing a charity event, friends can be an excellent resource.

Social lending is becoming more common as people value community involvement and personal connections in philanthropic efforts. Statistically, Peer to Peer lending is estimated to hit $926.55 billion by 2030 – that’s due to demand for alternative sources of funding and increasing adoption of digitalization – SNS Insider.

Reason 10. Funding for Your Artistic Projects

Artists and creatives often struggle to find funding for their projects. Whether it’s a music album, a painting exhibition, or a theater production, these endeavors can be costly.

Friends who believe in your talent and share your artistic vision might be willing to invest in your project.

Reason 11. Health and Wellness Needs

Health and wellness are essential, but sometimes the associated costs can be overwhelming.

It could be a gym membership to improve physical health or therapy sessions for mental well-being – these expenses might not fit into your budget.

Your friends can lend you money for these purposes. The trend of supporting friends in their health journeys reflects a broader societal emphasis on well-being and personal growth.

Reason 12. Emergency Pet Care

Pets are often considered family, and when they fall ill or need emergency care, the costs can be substantial. Veterinary bills can add up quickly, and you might not have the funds readily available.

You can reach out to friends to lend you money to ensure that your furry friend gets the care they need.

Reason 13. Legal Emergencies

Sometimes, legal issues can arise unexpectedly, requiring immediate financial resources. Whether it’s a traffic ticket, bail money, or hiring an attorney for an unforeseen legal matter, these expenses can be daunting. Your friends might understand the urgency and importance of legal representation. Therefore, they are likely to lend the money.

What Do You Say When Borrowing Money from a Friend?

Irrespective of your good reasons to borrow money from friends, it can be a sensitive issue. That’s because of the trust, communication, and respect for one another’s financial situation involved in it.

The way you approach this conversation can make all the difference. And that’s because you must preserve a healthy relationship.

1. Stay Honest

You want to be clear about why you need the money.

Explain the situation honestly, whether it’s an emergency like unexpected medical bills or something more planned like starting a small business. Honesty helps build trust, showing that you’re not hiding anything.

2. Show Your Intent to Repay

One of the concerns your friend might have is whether or not you’ll pay back the money. This is one of the signs that encourage people to give you money.

Make sure to communicate your intention to repay and even suggest a repayment plan. If possible, write down the terms to make everything with your friend transparent.

3. Respect Their Decision

Your friend has the right to say NO, and you should respect that decision without holding any grudges.

It’s their money, and they might have reasons not to lend it, even if they don’t disclose those reasons to you. They might also be in a financial tight spot at the moment – remember that.

4. Avoid Making it a Habit

Borrowing money from friends should not become a habit. Make it clear that this is a one-time situation and that you’re taking steps to ensure it doesn’t happen again.

If you keep borrowing, that could strain the relationship. At some point, they will be forced to reconsider ever making you a friend. So, don’t let it get to this stage.

5. Keep Communication Open

Giving all the good reasons to borrow money from friends is one thing – but another to repay the money. That’s because you might not have the money on or before the timeline you specified. So, after borrowing the money, keep the lines of communication open.

You want to update your friend on your situation, especially if something changes in your ability to repay the loan.

Sample Dialogue

Here’s an example of how you might approach a friend to borrow money:


Hey [Friend’s Name], I’m in a bit of a tight spot financially right now because of [explain the situation].

I’ve looked into other options, and I was wondering if I could borrow [amount] from you. I’ve worked out a plan to pay you back [explain repayment plan]. I completely understand if you can’t, but I wanted to talk to you about it first.


[Response, either agreeing, asking more questions, or declining].


[Continue the conversation, respecting their response, and providing more details if needed].

Is it Good to Borrow Friends Money?

It’s good to borrow money from friends but this is a subject you want to give careful thought and assess your repayment ability carefully. You don’t want to put yourself in a position where your friend money-shames you.

On the positive side, your friends offer more favorable terms than a bank, without interest or with a flexible repayment plan.

That’s because they know you well and might be more understanding of your situation. In an emergency, they can provide quick help.

If the loan is not handled carefully, it might damage the relationship. There might be misunderstandings about repayment terms or feelings of resentment if repayment is delayed.

As a solution, the key is “clear communication and understanding” from both sides.

If you are both open about expectations and agree on terms, it can be an OK experience. Otherwise, it might be a bad idea to borrow money from friends.

What is a Sample Message for Borrowing Money?

For an Emergency Situation

Hi [Name of Friend],

I hope you’re well. I find myself in an unexpected situation with my car breaking down, and I need [amount] for repairs.

I’ve planned a way to pay you back within [time frame]. Could we talk about this possibility? I understand if it’s not okay with you.

For a Business Opportunity

Hey [Friend’s Name], I’ve come across a business opportunity that I believe in, but I’m a bit short on funds. I need [amount] to get started, and I’ve worked out a repayment plan over [time frame].

I value our friendship and wouldn’t ask if I didn’t think this was a great opportunity. Can we discuss it, please?

For Educational Purposes

Dear [Friend’s Name],

I’ve been accepted into a course that could really advance my career, but I’m short [amount] for the tuition. I’ve planned to pay you back within [time frame]. I know this is a big ask, but I wanted to talk to you about it first. Your support would mean the world to me.

Read alsoHow to Ask Rich People for Money Online and Get It

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