‘Speaking Truth’ to Lenders

After considering such factors, you may still feel that a business loan is necessary. If it cannot be obtained through secular means, it is not necessarily wrong to approach a fellow Christian, for it is common to turn to friends in time of need, as Jesus noted at Luke 11:5. Yet one should take pains to “speak truth.” (Ephesians 4:25) Honestly explain all the facts involved​—including the risks, even the ones that may seem to be remote. And do not take offense if the prospective lender asks numerous pointed questions so that he can be sure that he has an accurate picture.c

Would it be speaking truth to borrow for one reason and then use the funds for another? Hardly. A Latin-American banker explains: “A bank would cancel your credit, and if you didn’t pay up your debt immediately, they would get a court order to seize your belongings.” If money is lent on the premise that it will increase the profitability of a business, to use it for another purpose in effect robs the lender of his assurance that the loan can be repaid. True, you may not fear legal reprisals when borrowing from a fellow Christian. Nonetheless, “the borrower is servant to the man doing the lending,” and you have an obligation to be honest with him.​—Proverbs 22:7.

Applying the Golden Rule in Business

Jesus said: “All things, therefore, that you want men to do to you, you also must likewise do to them.” (Matthew 7:12) How important it is that this rule prevail when we are doing business with a fellow believer! For example, how would you react if a brother turned down your request for a loan? Would you feel that he betrayed your friendship? Or would you respect his right to decline your offer, realizing that he may well need his funds or may assess the risks as more serious than you do? He may honestly question your ability to handle the funds effectively. In such a case, his refusal may very well be both practical and loving.​—Proverbs 27:6.

If a friend does agree to lend you some money, details should be spelled out in writing, including how much has been borrowed, to what use the money will be put, what assets are security for the loan, and how and when it will be paid back. In some cases it is even wise to have the contract drawn up or looked over by a lawyer and filed with the authorities. At any rate, once an agreement has been signed, “let your word Yes mean Yes, your No, No.” (Matthew 5:37) Do not presume upon your friend’s goodwill by failing to take your obligation toward him as seriously as you would toward a bank.