Loan money to any borrower safely by requiring a cosigner
If you’re making a loan to someone with little or no credit history (or questionable credit), it may make sense to require a cosigner or two on the written agreement. When a cosigner -- typically a relative or friend of the primary borrower -- cosigns on a loan, they assume responsibility if the borrower can’t repay the debt. When you use it in tandem with one of Nolo’s Promissory Notes, the Cosigner Provision can:
- give you peace of mind when extending credit to riskier borrowers
- act as a loan repayment insurance policy (each person who cosigns a loan is 100% responsible for repayment if the borrower can’t pay)
- provide full, written disclosure of cosigners’ potential liability for debt under the loan
Take some of the risk out of the lending process by adding a Cosigner Provision to your Promissory Note.