MoneySavingExpert has just published a guide to lending money to family and friends. Its central advice is simple: if you want the money back, put it in writing. It even includes a free template agreement.
We agree. It's the reason Pebblio exists.
Our own research with 2,000 UK adults found that 54% had lent or borrowed money informally in the past year. Among those who had, 39% experienced a misunderstanding about repayment. Usually it's nothing dramatic, just two people remembering the arrangement differently.
Why a signed agreement isn't the whole answer
A written agreement records what you agreed on day one. But most family loans run for months, sometimes years, and that's where things drift.
- Who has paid what, and when?
- Is the next payment due this month or next?
- Did that bank transfer count towards the loan or was it for something else?
A signed document sitting in a drawer doesn't answer any of these. Both people end up keeping their own mental tally, and that's usually where the awkward conversations start.
Keeping a record matters, even for informal loans
The MSE guide makes a point many people overlook. Even informal family loans are worth documenting, because if HMRC ever asks why someone has been sending you regular payments, a clear record makes that conversation much easier.
Where Pebblio fits
Pebblio picks up where the template leaves off. You create a legally binding written agreement, set a repayment schedule, and both of you can see the same record of what's been agreed and what's been paid. Gentle reminders go out before each repayment is due, so nobody has to be the one to bring it up.
It's documentation, not lending. The money moves between you exactly as it would anyway. Pebblio just makes sure you both remember it the same way.
Keep it interest-free
The MSE guide also notes that interest-free loans are by far the simplest option, with no tax reporting needed. Every agreement on Pebblio is interest-free by design.
Before you lend
If you're thinking about lending to someone close to you, read the full MoneySavingExpert guide first. It covers whether lending is right for you at all, which is the most important question.
If you decide to go ahead, create your first agreement free here.