I keep a notebook where I keep track of maids’ salaries. I ask them to sign on the notebook every time they receive their salaries and cash advances.
Drivers go through the same thing. Their number of days worked, their salaries, allowances, etc. are printed on a bond paper. When they are paid, they sign on that same bond paper, as proof that their received any money due to them.
Employees, including us, sign vouchers every time we receive our salaries and allowances. In rare times that I borrowed a few pesos from the petty cash, if I haven’t returned the pesos the next day, the petty cashier would come knocking on my door, asking me to sign the voucher. Why? Because she’s accountable. If twenty pesos is missing, then it would be her loss, not ours. Even if the money went to me, it must be properly recorded and classified under an account. Was the twenty pesos used to buy buko juice for me or jeep transportation for the messenger?
There have been many times that I receive cash from other people without any receipt. This is for personal transactions. But my brains have a way of remembering how much I owe a person. That’s an assurance that even if they didn’t ask me to sign a proof of payment, they would still get paid by me, because I do honor my commitments.
In the same breath, I have given money to others without requiring them to sign a voucher. It’s a calculated risk. Money that I have lent to people never came back.
Whether they signed a document or not. Ibig sabihin, it was never their intention to pay me back to begin with. They thought the words pahiram at pautang are synonyms of pahingi.
If you are into financing or lending money as a side business, of course you expect to be paid the principal and some interest income. It is most prudent and smart to have this person sign a legal document detailing all the terms and conditions of your transaction. The principal amount, any interest per month, penalty for late payment, etc. Attach a copy of his/her identification card like driver’s license. Make sure you have the complete business and residential address of this individual so that you know where to find him in case he tries to hide from you.
Be careful when lending money, many borrowers have no intention to pay back what they owe, and they would do anything to avoid you.
If you are very aggressive in your lending business and you require NO collateral other than the person’s face, his Post Dated checks, and your prayer that this person is dependable and trustworthy, lend only smaller amounts so that your risk is limited. Spread your risk. Do not lend to one or two persons only. Do not bet all your money. If you lose them, you could go bankrupt.
True story:
Company B is into lending business. They thought they found a very good client, Mr. Jack. The loan officer of Company B has a very high regard for Mr. Jack. She said he is very professional to deal with, to use her own words “Napaka gwapo, makinis ang balat, at mukha talagang mayaman”. Upon background investigation, Mr. Jack lives in a beautiful house inside a gated subdivision in Cavite and he owns four pharmacies. He is respected in the community.
Based on this alone, they lent Mr. Jack half million pesos, as character loan. No collateral. No post dated checks. Jack never paid them a single centavo. After receiving the money, he never answered their calls. The bank’s officers could not enter the village where jack lives, nor they could find him in any of his pharmacies. Mr. Jack clearly had no intention to pay them back.
From an anonymous reader:
I should have read this before I handed over money to a very, very good friend who said he needed it for his son’s college tuition fee. He said he would pay me within 3 months. It has been over 4 years, his son has graduated and now working, and the man I had considered a friend before had now unfriended me in Facebook and yet to pay up.
I have learned to charge it to experience. But from time to time, it still riles me that I was so naive and such a sucker.
