What are some good excuses to avoid lending money to relatives without damaging the relation

Be prepared for them to:

• Ask why.
• To ask who else or how much you gave other relatives.
• To criticize purchases you’ve made for yourself or others.
• To try to GUILT you because of their problems, or because if you loved/respected them you’d pay for the relationship, or because their children are in need.

What are the advantages and disadvantages of borrowing money from friends and family?

On a practical level, they may offer loans without security or accept less security than banks. May lend funds interest-free or at a low rate. May agree to a longer repayment period or lower return on their investment than formal lenders. They may also seek a lower rate of initial return than commercial backers.

What are the advantages for private individual of borrowing money from different sources?

Advantage: Funds to Grow

By offering a building or assets as collateral, you can often get low interest rates. Plus, the interest is often tax deductible as a business expense. If you are a sole proprietor, you typically get the loan based on your individual qualifications, such as income and credit history.