Your invitation and judgment
You invite a business or individual into your network. The borrower, called the Member, provides the request and supporting information. You assess their ability to repay and decide whether to proceed.
For lenders
Your capital.
Your lending decision.
Lend to people and businesses you know, on terms you agree together. We prepare the documents, manage payments, and handle follow-up.
See how lending works with Friendly.
Explore a personal or business loan—from reviewing the request to setting terms and seeing how repayment works.
Illustrative examples. Nothing is sent or funded.
You decide whether to lend.
We manage the loan.
Terms you can review and change
Choose the amount, interest rate, term, repayment structure, and fee allocation. Approve, propose different terms, or decline.
Documents prepared for your loan
We prepare your loan agreement and keep the signed documents in your loan record.
Money movement,
from funding to repayment.
Your funding account is held at our banking partner. Friendly coordinates funding and repayments and keeps your loan records together.
You authorize the funding.
Funding begins after you authorize it, the loan documents are signed, and account checks are complete.
Your borrower receives the funds.
We coordinate the transfer from your funding account to your borrower’s receiving account. You can follow its progress in the loan record.
Repayments return to you.
As your borrower repays, principal and interest return to your funding account. We manage the schedule, record payments, and follow up when needed.
Stay informed throughout the loan.
See what has been repaid and what is still due. Repayment schedules, statements, payment history, documents, and payoff records stay with the loan.
When repayment needs attention
Friendly follows up on payment issues and records support requests with the loan. You review proposed changes; revised terms require the applicable approvals and documentation.
Lending risk
You bear the lending risk, including late or missed payments and loss of capital. Servicing provides follow-up; it does not guarantee repayment.
Understand what each side pays.
Your interest and Friendly’s service charges are separate. Explore either example above to see the payments, fees, and what each side receives.
Interest and servicing
You receive principal and interest at the rate you agree. The borrower pays a separate servicing charge based on the loan amount and structure, calculated on the outstanding balance with a $20 monthly minimum. Servicing covers scheduled payments, statements, follow-up, and approved changes.
Preparation and verification fees
You choose who pays the preparation and verification fees. If you cover them, the borrower receives the full loan amount. Borrower-paid fees can be deducted from funding or added to principal.
Payment schedule and principal due
The repayment structure determines when principal is due. An interest-only loan leaves a final balloon payment; an amortizing loan repays principal through regular installments.
The details behind your decision.
Explore the choices in the examples, then use your loan and service agreements for the details of your arrangement.
Terms, repayment, and costs
Review the purpose and proposed repayment source, principal, interest, servicing charges, fee allocation, and repayment schedule. Consider the final principal payment as well as the regular installments.
Privacy and access to records
Loan information follows account roles. Borrowers see their own activity; you follow the loans you fund. Sharing records with an advisor requires your authorization.
Privacy notice →Why AFR appears
The Applicable Federal Rate is a tax reference that can matter for below-market loans. Your CPA or attorney can assess its relevance to your arrangement. Friendly does not provide tax advice.
IRS guidance on below-market loans →Create your lender account.
Create your sign-in, then complete identity verification and funding account setup. You choose whether to proceed with each loan.